Question

How many years does it take for $1,000 grow to be $1,500, if interest rate is...

  1. How many years does it take for $1,000 grow to be $1,500, if interest rate is 12% compounded monthly?

BGN or END MODE ( choose one ) P/Y =

N= ?

I/Y=

PV=

PMT=

FV=

CPT , N =

Can you explain how you computed it for compunded monthly.

2. How many years does it take for $1,000 to grow to be $1,500, if interest rate is 12%?

BGN or END MODE ( choose one ) P/Y =

N= ?

I/Y=

PV=

PMT=

FV=

CPT , N=

3. What is the value of a three-year $100 annuity due after 3 years if interest rate is 26% compounded quarterly?

BGN or END MODE ( choose one ) P/Y =

N=

I/Y=

PV=

PMT=

FV=

CPT ,

4.   What is the PV of a five-year $100 annuity due if interest rate is 26% compounded semi-annually?

BGN or END MODE ( choose one ) P/Y =

N=

I/Y=

PV=

PMT=

FV=

CPT,

5. What is the current value of a five-year $100 annuity if interest rate is 26% compounded annually?

BGN or END MODE ( choose one ) P/Y =

N=

I/Y=

PV=

PMT=

FV=

CPT,

6. What is the PV of a five-year $100 annuity if interest rate is 26% compounded semi-annually?

BGN or END MODE ( choose one ) P/Y =

N=

I/Y=

PV=

PMT=

FV=

CPT,

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Homework Answers

Answer #1

As per rules I am answering the first 4 subparts of the question

END MODE

P/Y = 12

N= ?

I/Y= 12

PV= -1000

PMT=0

FV=1500

CPT ,

N = 40.74890716

It will take 40.75 months or 3.3957 years.

Monthly compounding is done by entering P/Y=12


2.

END MODE

P/Y =1

N= ?

I/Y= 12

PV=-1000

PMT=0

FV=1500

CPT ,

N= 3.577780039

It will take 3.58 years.

3.

END MODE

P/Y =4

N= 3

I/Y= 26

PV= 0

PMT=-100

FV=?

CPT ,

FV= 1737.07

4.

END MODE

P/Y = 2

N= 5

I/Y= 26

PV= ?

PMT= -100

FV= 0

CPT

PV= 542.62

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