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Directions: For the following time value of money (TVM) calculations, be sure to show financial calculator inputs (PV, FV, PMT, I, N). Identify the component
Directions: For the following time value of money (TVM) calculations, be sure to show financial calculator inputs (PV, FV, PMT, I, N). Identify the component you are solving for with a "CPT-" and highlight it in yellow (10 points). Any problem that does NOT show this information will earn 0 points. Solve the problem and enter the response next to the "CPT.. Be sure to show the cash flow direction for all PVs, FVs, and PMTs (if a negative- sign is not shown, it will be assumed that the cash flow is an inflow) For example, if you deposit $400 into an account paying 4% interest compounded annually, how much will you have in the account after three years? PV=-400 * PMT=0 N-3*1-(n*m)-3 FV-CPT-449.95 *Be sure to use negatives appropriately to signifv cash flow direction. Negatives sianify cash outflows (e.g., a deposit into the bank) and non-negatives (i.e. positive numbers) represent cash inflows (e.g., money received from the bank). Also to establish a good habit, always think about entering the period rate (im) and number of compounding periods (n*m) for I and N. This way when you have compounding that is not ANNUALLY, you have accounted for the difference. Remember m=the number of compounding intervals per year; so with annual compounding Be sure to use at least five decimal places in your intermediate calculations and ONLY round your final response to two decimal places
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