BU111 : TVM Problems Answers.docx
19
BU111 Full Course Notes
Verified Note
19 documents
Document Summary
Bu 111 time value of money problems- answer key. Tiffany has decided to deposit ,200 into an account earning 4. 75% per year for 40 years. Fv ordinary annuity = pmt (1 + r)n 1 r. Currently, there are 3 different lottery options she can choose from. Dave needs ,000,000 in order to retire and is able to save up ,000 per year. Tosha and her best friend rebecca have decided to purchase a house in waterloo that they can live in for the next three years and then rent to students. The house they purchased is ,000 and they have made a down payment of ,000. Tosha and rebecca arranged a 5 year mortgage with the bank of tersigni at a 5. 50% interest rate compounded semi-annually. The mortgage has an amortization period of 25 years. Amount owing today: ,000 - ,000 = ,000 rnom = 5. 50% m = 2 p = 12 r = . 0045 n = 300.
