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  • FIN 202 1st Assignment (Rawan Joudeh)

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    1. The document contains 7 compound interest calculation problems. It calculates things like how long it takes an amount to double at a given interest rate, the future value of an investment over a set number of years, and the present value of a future sum. 2. The first problem calculates it takes around 10 years and 2 months for $4,000 to double at a 7% interest rate. 3. The last problem calculates that $38,261 invested for 30 years at a 9.16% interest rate will be worth $531,618.

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    1. The document contains 7 compound interest calculation problems. It calculates things like how long it takes an amount to double at a given interest rate, the future value of an investment over a set number of years, and the present value of a future sum. 2. The first problem calculates it takes around 10 years and 2 months for $4,000 to double at a 7% interest rate. 3. The last problem calculates that $38,261 invested for 30 years at a 9.16% interest rate will be worth $531,618.

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    22 views2 pages

    FIN 202 1st Assignment (Rawan Joudeh)

    Uploaded by

    rawan joudeh
    1. The document contains 7 compound interest calculation problems. It calculates things like how long it takes an amount to double at a given interest rate, the future value of an investment over a set number of years, and the present value of a future sum. 2. The first problem calculates it takes around 10 years and 2 months for $4,000 to double at a 7% interest rate. 3. The last problem calculates that $38,261 invested for 30 years at a 9.16% interest rate will be worth $531,618.

    Copyright:

    © All Rights Reserved
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    of 2

    Name: Rawan Maher Joudeh ID: 201812160

    FIN202 1st Assignment (SEC:145)

    1- At 7% how long does it take to double your money?

    I/Y = 7%
    FV = $ 8,000
    PV = $ - 4,000
    PMT = 0
    CPT N = around 10 years and 2 months (10.2)

    2- Assume you deposit 10,000 in an account that pays 6% . how much will you have in 5
    years

    I/Y = 6%
    PV = $ 10,000
    N = 5 years
    PMT = 0
    CPT FV = $ 13,382.25

    3- Suppose you just celebrated your 19th birthday. A rich uncle has set up a trust fund for
    you that will pay you 150,000 when you turn 30. If the discount rate is 9% how much
    this trust fund will worth today ?

    I/Y= 9%
    N = 11 years
    PMT = 0
    FV = $150,000
    CPT PV = $ 58,130

    4- You have been offered an investment that will pay you 9%. If you invest $15,000. How
    long until you have $30,000? How long until you have $45,000?

    I/Y = 9% I/Y = 9%
    FV = $ 30,000 FV = $ 45,000
    PV = $ 15,000 PV = $ 15,000
    PMT = 0 PMT= 0
    CPT N = around 8 years CPT N = around 12 years and 7 months
    Name: Rawan Maher Joudeh ID: 201812160
    FIN202 1st Assignment (SEC:145)

    5-
    Present value Years Interest Rate Future value
    $ 2,250 11 10 % $ 6,419.51
    8,752 7 8 14,999.39
    76,355 14 17 687,764.16
    183,796 8 7 315,795.74

    6-
    Present value Years Interest Rate Future value
    $ 10,295.65 6 7% $ 15,451
    21,914.85 7 13 51,557
    43,516.89 23 14 886,073
    116,631.32 18 9 550,164

    7-
    Present value Years Interest Rate Future value
    $ 240 2 11.24 % $ 297
    360 10 11.61 1,080
    39,000 15 10.95 185,382
    38,261 30 9.16 531,618

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