ADM 2350 Lecture Notes - Lecture 3: Microsoft Powerpoint, 2016 Nfl Season

71 views5 pages

Document Summary

As we continue to talk about the time value of money we continue doing examples of problems in class. Now you should start reading ch 4 power point slides (posted on blackboard) From last week we need to remember formula. Example 1: you invested at an annual interest rate of x% and in 5 years you find that you have accumulated . Interest is annual, period of investment is five years, so, in five years you will get (1+x)5= in five. To solve this equation note that (1+x)5=4. 5 or (1+x) = Assume that the investment period was n months then: Assume that the investment period was n months then and interest rate per month is. And we can write (1+0. 001)n= or (1+x)n= 2. Taking ln of both sides of it we"ll get ln ((1+x)n)= ln(2) or n ln (1+0. 001)= ln(2) and, finally, n= Solution: let"s compare pvtoday of options (i) and (ii)

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions