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create diagram when needed, ) Future value = cash flow ( 1 +r ) r = rate he no of periods Given :

create diagram when needed,

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" ) Future value = cash flow ( 1 +r ) " r = rate he no of periods Given : cash flow = $450 No. of periods = 8 years rate = 14.5010 FV = $450 14 0.145 = $ 450 ( 2 . 95 4 227207) $ 1 1 329 . 40 $ 1329. 40 2: R = R = Effective interest rate i = nominal interest rate toon = compounding per year , semi annually so 2. 1 = 0:16 n = 2 R = [ 1 7 / 10 : 16 = 10.1664 X 160 2 16 64 0 163 calculation of interest per month amer guying i - interest rate \\ + 1 = 12 0 .0 07974 031 - 17 12 1 3 359 A A Total number of paymentsing ? ! 12 months * 30 years F 12 x 30 =360 months Borrow money = Atp 10 0 60 0 = AT A ( 1 + 0- 0 079 76 ) 359-1 ( AAAA (1+ 0. 607974 ) 359 ( 0.007974) A = 839. 19 each month A = $ 8 39Given : 4 Future value ( FV ) = 18 000 Annual interest ( R) = 150 /0 Annual Payment ( P ) Future value period ( N ) : 5 years Number of annual payment = 3 F V = J P ( 1 + R ) ( N - I ) ] + [ P ( 1 + R ) ( N - 2 ) ] + [ P ( 1 + R ) ( N - 3 ) ] 180 0 0 = [ P ( 1+ 0 15 ) ( 5 - 1 ) ] + [ P / 1 + 0 . 15 ) ( 5 - 2 ) ] + [ P/ 1 + 6.15 ) ( 5-3) ] 18 0 0 0 = [ 1 . 7 4 9 0 0 6 2 5 P ] + | 1 . 5 2 0 8 7 8 P ] + [ 1-3525 PJ 18 600 = 45 9 238 125 P P = 18000 4- 59 238125 P = 3919. 54

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