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FIN 202 1st Assignment (Rawan Joudeh)

1. The document contains 7 compound interest calculation problems. It calculates things like how long it takes an amount to double at a given interest rate, the future value of an investment over a set number of years, and the present value of a future sum. 2. The first problem calculates it takes around 10 years and 2 months for $4,000 to double at a 7% interest rate. 3. The last problem calculates that $38,261 invested for 30 years at a 9.16% interest rate will be worth $531,618.

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36 views

FIN 202 1st Assignment (Rawan Joudeh)

1. The document contains 7 compound interest calculation problems. It calculates things like how long it takes an amount to double at a given interest rate, the future value of an investment over a set number of years, and the present value of a future sum. 2. The first problem calculates it takes around 10 years and 2 months for $4,000 to double at a 7% interest rate. 3. The last problem calculates that $38,261 invested for 30 years at a 9.16% interest rate will be worth $531,618.

Uploaded by

rawan joudeh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Name: Rawan Maher Joudeh ID: 201812160

FIN202 1st Assignment (SEC:145)

1- At 7% how long does it take to double your money?

I/Y = 7%
FV = $ 8,000
PV = $ - 4,000
PMT = 0
CPT N = around 10 years and 2 months (10.2)

2- Assume you deposit 10,000 in an account that pays 6% . how much will you have in 5
years

I/Y = 6%
PV = $ 10,000
N = 5 years
PMT = 0
CPT FV = $ 13,382.25

3- Suppose you just celebrated your 19th birthday. A rich uncle has set up a trust fund for
you that will pay you 150,000 when you turn 30. If the discount rate is 9% how much
this trust fund will worth today ?

I/Y= 9%
N = 11 years
PMT = 0
FV = $150,000
CPT PV = $ 58,130

4- You have been offered an investment that will pay you 9%. If you invest $15,000. How
long until you have $30,000? How long until you have $45,000?

I/Y = 9% I/Y = 9%
FV = $ 30,000 FV = $ 45,000
PV = $ 15,000 PV = $ 15,000
PMT = 0 PMT= 0
CPT N = around 8 years CPT N = around 12 years and 7 months
Name: Rawan Maher Joudeh ID: 201812160
FIN202 1st Assignment (SEC:145)

5-
Present value Years Interest Rate Future value
$ 2,250 11 10 % $ 6,419.51
8,752 7 8 14,999.39
76,355 14 17 687,764.16
183,796 8 7 315,795.74

6-
Present value Years Interest Rate Future value
$ 10,295.65 6 7% $ 15,451
21,914.85 7 13 51,557
43,516.89 23 14 886,073
116,631.32 18 9 550,164

7-
Present value Years Interest Rate Future value
$ 240 2 11.24 % $ 297
360 10 11.61 1,080
39,000 15 10.95 185,382
38,261 30 9.16 531,618

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