Diferred Annuity (Test 2)

1. A = P(1+rt)
10000 = 8000(2.5)(t)
10000 = 20000t
20000t = 10000
t = 0.5
2. A = P(1+rt)
100000 = 10000(1+5(r))
100000 = 10000(6r)
100000 = 60000r
60000r = 100000
r = 1.6%
3. A = P(1+r/n)^nt
= 16000(1+0.08/2)^(2(3))
= 16000(1+0.04)^(6)
= 16000(1.04)^(6)
= P20245.10
4. 20000 = 10000(1+r/4)^(4(10))
r = 0.06 or 6%
5. A = P(1+r/n)^nt
= 100000(1+0.064/2)^(2(4))
= 100000(1+0.032)^(8)
= 100000(1.28658)
= P128658
A = P(1+r/n)^nt
= 100000(1+0.06/2)^(12(4))
= 100000(1+0.03)^(48)
= P413225.18
Angel should choose Investment B
6. F = P([1+i]^n-1)/i
1000000 = P([1+0.04]^(2(15))-1)/0.04
P = P17830.09
7. F = P([1+i]^n-1)/i
= 15200([1+0.12]^(12)-1/0.12
= 366823.62
= 300000+366823.62
= P666823.62
8. A = P(1+r/n)^nt
35000 = P(1+0.06/12)^(12(3))
P = P35166.45
P166.45 interest
9. A = P(1+r/n)^nt
= 5000(1+0.06/3)^(3(6))
= 5000(1+0.02)^18
= P7141.23
10. F = P([1+i]^n-1)/i
= 20000([1+0.1]^12-1/0.1
= 427685.67
= 400000 + 427685.67
= P827685.67