Lim, Julienne Beatrice PinedaCOMPOUND

Time Value of Money

Future Value of an Amount Present Value of an AmountPresent amount $500 Future amount $10,000 Number of periods 60 Number of periods 3 Interest rate per period 0.8% Interest rate per period 11.0%Future value $821 Present value $7,312

Future Value of an Annuity Present Value of an AnnuityPayment per period $500 Payment per period $350 Number of periods 5 Number of periods 48 Interest rate per period 10.0% Interest rate per period 0.75%First payment (enter 0 or 1) 1 First payment (enter 0 or 1) 1

(0=end of period, 1=now) (0=end of period, 1=now)Future Value $3,358 Present Value $14,170

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Lim, Julienne Beatrice PinedaCompound Answer Sheet

Table Payment Number Interest Firstused amount of periods rate payment Answer

Exercise1a FV amt $ 500 5 10.00% x $ 805 b FV annuity $ 500 5 10.00% 1 $ 3,358 c PV amt $ 500 5 10.00% x $ 310 d PV annuity $ 500 5 10.00% 0 $ 1,895

Exercise 2a FV amt $ 500 10 5.00% X $ 814 b FV amt $ 500 20 2.50% X $ 819 c FV amt $ 500 60 0.83% X $ 823

Exercise 3a PV amt $ 10,000 3 9.00% X $ 7,722 b PV amt $ 10,000 3 8.00% X $ 7,938 c PV amt $ 10,000 3 11.00% X $ 7,312

Exercise 4a PV annuity $ 6,800 7 15.00% 0 $ 28,291 b PV annuity $ 6,800 7 12.00% 0 $ 31,034

Exercise 5a PV annuity $ 4,200 4 9.00% 1 $ 14,831 b PV annuity $ 350 48 0.75% 1 $ 14,170

Exercise 6a FV amt $ 10,000 15 11.40% X $ 50,498 b FV annuity $ 1,574 15 10.00% 0 $ 50,010

Exercise 7 PV annuity $ 50,000 20 10.00% 1 $ 468,246

Exercise 8 FV amt $ 60,000 30 3.00% x $ 145,636

Exercise 9 PV annuity $ 32,469 5 11.00% 0 $ 120,002

Exercise 10 FV amt $ 10,000 34 7.00% x $ 99,781

$ 805 $ 3,358 $ 310 $ 1,895

$ 814 $ 819 $ 823

$ 7,722 $ 7,938 $ 7,312

$ 28,291 $ 31,034

$ 14,831 $ 14,170

$ 50,498 $ 50,010

$ 468,246

$ 145,636

$ 120,002

$ 99,781