FIN 419 help A Clearer path to student success/uophelp.com FIN 419 help A Clearer path to student success/uop | Page 13

This Tutorial comes with a excel sheet
P3-1
Future Value. Fill in the future values for the following table using one of the
three methods below:
a. Use the future value formula, FV = PV*(1+r)n.
b. Use the TVM keys from a calculor.
c. Use the TVM function in a spreadsheet.
P3 – 4
Future Value. Grand opening Bank is offering a one-time
investment opportunity for its new customer. A customer opening a new
checking account can buy a special saving bond for $ 400 today , Which the
bank will compound at 8.5% for the next ten years. The savings bond must be
held for at least five years, but can then be cashed in at end of any year
starting with years five. What is the value of the bond at each cash-in date up
through year ten ?
What is the value of the savings bond at the end of year five ?
a. What is the value of the savings bond at the end of year five ?
b. What is the value of the savings bond at the end of year six?
c. What is the value of the savings bond at the end of year seven?
d. What is the value of the savings bond at the end of year eight?
e. What is the value of the savings bond at the end of year nine?
f. What is the value of the savings bond at the end of year ten?
P 3– 8
a. Use the present value formula, PV = FV*---
b. Use the TVM keys from a calculator.
c. Use the TVM function in a spreadsheet.
P3-15