Chapter 8 In class assignment- submitted in Canvas
Use these factors to answer questions
n |
i |
PV$1 |
FV$1 |
PVA |
FVA |
3 |
5% |
0.86384 |
1.15763 |
2.72325 |
3.1525 |
5 |
6% |
0.74726 |
1.33823 |
4.21236 |
5.6371 |
60 |
0.50% |
0.74137 |
1.34885 |
51.72556 |
69.7700 |
1.as we need to find the present value for 30000$ at the rate of 6% for five years
we will use PV factor
=30000*0.74726
=22418$
2.we will use Future value to find out the value of 30000$ vcar after 5 years at 6%
30000*1.33823
=40147$
3.future value of 60000$ n 3 r=5%
60000*1.15763
=69458$
after 3 years you are getting67000$ which is lesser
so the economic deicion is to accept money at present
4.2000$ is invested every year so will useFVA
=2000*5.6371
=11274$
5. present value of 20000$
=20000*0.74726
=14945$
Chapter 8 In class assignment- submitted in Canvas Use these factors to answer questions n i...
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