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ECON 4400 (30)
Dr. (8)
Lecture

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Department
Economics
Course
ECON 4400
Professor
Dr.
Semester
Summer

Description
The length of time to quadruple your money istFV41107 tln 4ln 1072049 yearsNotice that the length of time to quadruple your money is twice as long as the time needed to double your money the difference in these answers is due to rounding This is an important concept of time value of money8LO3 To answer this question we can use either the FV or the PV formula Both will give the same answer since they are the inverse of each other We will use the FV formula that istFVPV1rSolving for r we get1trFVPV115r349582764114819LO4 To answer this question we can use either the FV or the PV formula Both will give the same answer since they are the inverse of each other We will use the FV formula that istFVPV1rSolving for t we gettlnFVPVln1rtln 17000040000ln 10532802 years10LO2 To find the PV of a lump sum we usetPVFV1r20PV650000000107415589340010 11LO2 To find the PV of a lump sum we usetPVFV1r80PV10000001104881912LO1 To find the FV of a lump sum we usetFVPV1r105FV50104550837113LO1 3 To answer this question we can use either the FV or the PV formula Both will give the same answer since they are the inverse of each other We will use the FV formula that istFVPV1rSolving for r we get1trFVPV1142264870015000r11311
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