Homework Answers
| Solution of problem 7 | Present value = Future value/ (1+r)n | |||||
| 1 | 22500 | 0.960615 | 21613.83 | |||
| 2 | 23295 | 0.480307 | 11188.76 | |||
| 3 | 23750 | 0.320205 | 7604.867 | |||
| 4 | 24505 | 0.240154 | 5884.966 | |||
| 5 | 25000 | 0.240154 | 6003.842 | |||
| Total present value | 52296.27 | |||||
| Solution of problem 8 | ||||||
| Future value = Present value (1+r)n | ||||||
| PV factors | Value | |||||
| 1 | 22500 | 1.238825 | 27873.55 | |||
| 2 | 23295 | 1.174241 | 27353.95 | |||
| 3 | 23750 | 1.113025 | 26434.34 | |||
| 4 | 24505 | 1.055 | 25852.78 | |||
| 5 | 25000 | 1 | 25000 | |||
| Total future value | 132514.6 | |||||
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