BUSI 1003 Lecture Notes - Lecture 9: The Monthly

• School: Carleton University
• Department: Business
• Course: BUSI 1003
• Professor: Patti Proulx

Document Summary

2, n=12*4=48; p mt = 360 i =7% /4= 0. 0175; F v n (due) = p mt [(1+i) ^n 1/i ] (1+i) Accumulated value after 12 years of depos its is $ 27, 202. 46. I/y = 6. 8% ; n= 9*2=18; i=6. 8/2=0. 034; p v =0. F v 1 (due) = p mt [(1+i) ^n -1/i] (1+i) V alue of the inves tment 9 years from now = ,820. 42. T o calculate the value in 15 years we will us e the f v1 of 9 years as p v value s o as to calculate the value 6 years (n=6*2 =12) from then. F v 2 = p v (1+i) ^n. In 15 years there will be ,235. 83 in the account. 8b, t otal depos ited = 3100 * 18 (number of depos its for 9 years ) = 55,800. 00. Interes t = f v d epos its. T otal interes t earned would be $ 60, 435. 83.