Chrris Rain Apparel Company Case Study
CHRIS SPEAR INVESTED $15,000 TODAY IN A FUND THAT EARNS 8% COMPOUNDED ANNUALLY. TO WHAT AMOUNT WILL THE INVESTMENT GROW IN 3 YEARS? TO WHAT AMOUNT WOULD THE INVESTMENT GROW IN 3 YEARS IF THE FUND EARNS 8% ANNUAL INTEREST COMPOUNDED SEMIANNUALLY?
PV=15,000 I=8% FV=? O N=3 3
15,000(1.25791) = 18,895.65
SEMIANNUALLY
PV=15,000 I=4% FV
0 N= 6 6
FVF3, 8%
15,000(1.26532) = 18,979.80
TONY BAUTISTA NEEDS $25,000 IN 4 YEARS. WHAT AMOUNT MUST HER INVESTED TODAY IF HIS INVESTMENT EARNS 12% COMPOUNDED ANNUALLY? WHAT AMOUNT MUST HE INVESTS IF HIS INVESTMENT EARNS 12% ANNUAL INTEREST COMPOUNDED QUARTERLY?
PV I= 12% FV=25,000
0 N= 4 PVFNI 25,000 X .63552
PV=15,000 I=8% FV=? O N=3 3
15,000(1.25791) = 18,895.65
SEMIANNUALLY
PV=15,000 I=4% FV
0 N= 6 6
FVF3, 8%
15,000(1.26532) = 18,979.80
TONY BAUTISTA NEEDS $25,000 IN 4 YEARS. WHAT AMOUNT MUST HER INVESTED TODAY IF HIS INVESTMENT EARNS 12% COMPOUNDED ANNUALLY? WHAT AMOUNT MUST HE INVESTS IF HIS INVESTMENT EARNS 12% ANNUAL INTEREST COMPOUNDED QUARTERLY?
PV I= 12% FV=25,000
0 N= 4 PVFNI 25,000 X .63552