BUSI 1003 Lecture 8: Unit 8 Exercise

• School: Carleton University
• Department: Business
• Course: BUSI 1003
• Professor: Patti Proulx

Document Summary

P mt n=6*12=72; i= 4. 8% /12 = 0. 004. F v n = p mt {(1+i) ^n -1 / i} F v n = 60{(1+. 004) ^72 -1/ 0. 004. T he depos it will be worth . 87 in 6 years at 4. 8% interes t compounded monthly. F v 1= r r s p contribution for the 10 years. R r s p contribution for the 10 years at 3. 8% interes t =,790. 69. F v 2=5 years of earnings on accumulated r r s p @ 3. 8% per annum. Ais ha will have a total of ,667. 76 in 15 years . P mt =135; n=5*12=60; i=8. 8% /12 = 0. 007333 find p res ent value of piano. C as h value of the p iano is . 98. F ind future value and deduct pres ent value to get the cos t of financing n=5*12=60; i=8. 8% /12=0. 007333; p v = . 98. T he total cos t of financing the p iano is ,594. 90.