Find the PV and FV of an investment that makes the following end-of-year payments. The interest rate is 8%. Year Payment 1 100 2 200 3 400 Rate = 8% To find the PV, use the NPV function: PV = Year Payment x (1 + I )^(N-t) = FV 1 100 1.17 116.64 2 200 1.08 216.00 3 400 1.00 400.00 Sum = ? PV = ? FV of PV = ?
Find the PV and FV of an investment that makes the following end-of-year payments. The interest rate is 8%. Year Payment 1 100 2 200 3 400 Rate = 8% To find the PV, use the NPV function: PV = Year Payment x (1 + I )^(N-t) = FV 1 100 1.17 116.64 2 200 1.08 216.00 3 400 1.00 400.00 Sum = ? PV = ? FV of PV = ?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Find the PV and FV of an investment that makes the following end-of-year payments. The interest rate is 8%.
Year Payment
1 100
2 200
3 400
Rate = 8%
To find the PV, use the
Year Payment x (1 + I )^(N-t) = FV
1 100 1.17 116.64
2 200 1.08 216.00
3 400 1.00 400.00
Sum = ?
PV = ?
FV of PV = ?
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