FRL 300 Ch 5 Hw

Bob bought some land costing $15,640. Today, that same land is valued at $45,317. How long has Bob owned this land if the price of land has been increasing at 4 percent per year?

27.12 PV= -15,640 FV= 45,317 I/Y= 4 CPT N 1.04^t= 45,317/15,640

Three years ago, you invested $3,350.00. Today, it is worth $4,100.00. What rate of interest did you earn?

6.97 % N=3 PV= -3,350 FV= 4,100 CPT I/Y (1+r)^3 = 4100/3350

What is the present value of $12,950 to be received 3 years from today if the discount rate is 5 percent?

$11,186.70 FV= 12,950 N=3 I/Y=5 CPT PV 12,950*(1/ (1+.05))^3

What is the future value of $3,008 invested for 10 years at 5.3 percent compounded annually?

$5,041.52 PV= $3,008 N=10 I/Y= 5.3 CPT FV $3,008 * (1+ .053)^10

Beatrice invests $1,450 in an account that pays 4 percent simple interest. How much more could she have earned over a 5-year period if the interest had compounded annually?

$24.15 1,450 (.04 * 5) + 1450=1740 1,450 x 1.04 ^5 = 1764.15 1764.15- 1740 = 24.15

Thomas invests $114 in an account that pays 4 percent simple interest. How much money will Thomas have at the end of 6 years?

$141.36 114 ( .04 * 6) + 114 = 141.36