BU111 Study Guide - Final Guide: Savings Account
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BU111 Full Course Notes
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Additional time value problems calculating number of years. 1. 25=1. 05 n ln 1. 25=n ln 1. 05 ln 1. 2 5 ln 1. 05. It will take 4. 57 years before your deposit is worth ,000. You are allowed to hold onto it, interest free, while in university but it will start accumulating interest when you graduate. 0049( 1. 0049)n ( 1. 0049)n=1. 3245 n(ln1. 0049)=ln1. 3245 n=ln1. 3245/ln1. 0049 n=57. 4944 it will take you 57. 5 months to pay off your loan: you are totally frustrated with university and all these time value of money exercises. All you can think about is that if you can get enough money together you can flee the country and go live in a tent on a warm island somewhere. You look up the cost of the flights and add up how much you would need for tents and survival gear and you realize you will have to save ,000. You immediately put into a savings account earning.
