1) PV = RM 10,000N =10 Years Interest = 9% Solution :PV / (1+Interest)N = RM 10,000/(1+0.09)10 = RM 10,000/(1.09)10 = RM 4224 2) FV = PV (1+i)N = RM 10,000 (1+0.09)10 = RM 10,000 (1.09)10 = RM 23,673.64 3) PVOA = PMT n PVOA = PMT (1+i) i - 1 = RM 5,000 [1-(1+0.09)-10] 0.09 = RM 5,000 [1-0.4224] 0.09 = RM 5,000 (6.418) = RM 32,088.69 4) P = RM 5,000 N = 10 Years 09)0.09)10-1] 0.266 .09-1] 0.65 6) FV of annual annuity = P [ (1+r)N -1] i = 500 [(1+0.09 = RM 75964.09 = RM 32.Interest = 0.29 5) FV0A = Cx [(1+0.09 = RM 43.088.09)-10] 0.09 = 5.000 [1-(1+0. exactly 30 days after the loan 7.Ali borrows RM240.067 )180 = 1.476.446 117.067 monthly interest A=ixPx ( 1+i )n ( 1+i )n – 1 = 0.000 at 8% for a mortgage for 15 years.067 x 240000 x ( 1+0. 2010.067 )180 . Prepare an annual amortization table assuming the first payment is due January 30.888. n = 15 years x 12 month = 180 month 8% / 12 = 0.13701 ( 1+0.376 = RM 16080.379. assuming all interest is reinvested at the 8% rate? n = 5 years x 12 month = 60 month r = 0.8.08 / 12 month ( compounded monthly ) FV = PV 1+ r (¿¿ n) ¿ = 5000 ( ( 1+0.08 60 ¿¿ 12m = 5000 ( 1+0.067 ¿ ¿60 = 5000 ( 48. How much will the note be worth at the end of 5 years.000 in an interest-bearing promissory note earning an 8% annual rate of interest compounded monthly.9627) = RM 244 813.40 . Joella invested RM5. Citraexpects to receive RM50.9.1 / 12 = 0.0083 PV = FV / 1+ r (¿¿ n) ¿ 24 = 50 000 / ( (1+0. Her opportunity cost is 10% compounded monthly.000 in 2 years. What is the sum worth to Citra today? n = 2 years x 12 month = 24 r = 0.219 = RM 41002 . 996 .0083) = 50 000 / 1. 72 = 10% 60 years .1 -1 0. Today Evall put all of his cash into an account earning an annual interest rate of 10%. what is the average annual compound rate of return (calculated semiannually) that Lolrenzo realized on her investment? RM 600 RM 1000 ( PV ) ( FV ) Rate of return = = = FV PV 1/n 1000 600 1/9 . Assuming he makes no withdrawals or additions into this account. If the bond matures today and the face value is RM1.058 % 11.000.10. approximately how many years must Evall wait to double his money? Use the Rule of 72 to determine the answer. Lolrenzo purchased a zero-coupon bond 9 years ago for RM600. 500 at the end of each year for the past 12 years.08 ) 0. 98 = RM 28470 . 518 0. How much has accumulated.1 .08 = 1500 1. Astro has been investing RM1.12.1 12 = 1500 ( 1 + 0.08 = 1500 18. assuming he has earned 8% compounded annually on his investment? n FVOA = PMT (1+i) i . 197) = RM 2619740 . He has been earning an average annual compound return of 11% compounded quarterly on this investment.0275) = 1000 [¿¿ 20−1] ¿ 0. Dellamin has been dollar cost averaging in a mutual fund by 13. How much is the fund worth today? (1+i) PV o = PMT [¿ ¿ n−1] ¿ A i (1+0.13.0275 =1000(26.000 at the beginning of every quarter for the past 5 years. Investing RM1. 08) =3000 [¿¿(−5)] (1+0.35 . She expects to earn 8% compounded annually on her investment.08 =3000 [3.000 at the beginning of each year for the next 5 years.08) = RM 12 936. Stevence wants to withdraw RM3.14. What lump sum should Stevence deposit today? (1+i) PV o = PMT [¿ ¿ n−1] (1+i) ¿ A i (1+0.08) ¿ 0.9927](1. 15. How much should she invest today at an annual interest rate of 9.095 12 = 0. 94 .5% compounded annually to have RM80. Lucas wants to give her son RM80.4377 = RM 55 645.095)4 = 80 000 1.34 PV = FV (1+r )n = 80 000 (1+0.4589 = RM 54 834.000 on his wedding day in 4 years.0079 PV = FV (1+r ) ¿ ¿ ¿ = 80 000 (1+0. monthly FV= 80 000 n= 4 x 12 = 48 month r= 0. how much would she need to invest today if she could have her interest compounded monthly? Explain which interest option would be most beneficial to Lucas.0079)48 = 80 000 1.000 in 4 years? Alternatively. 11 = 0.0092) = RM 131 735.42 (1+i) [¿ ¿ n−1] (1+ i ) PMT.( monthly compounded ) ( yearly compounded ) Monthly compounded is more benefit.23 ) (1.0092) = 150 ¿ 0.0092 = 150 (870.092) [¿ ¿240−1] ( 1 + 0. Payment = 150FVA = PMT ¿ . Briotta has been investing RM150 at the beginning of each month for the past 20 years. assuming she has earned an 11% annual return compounded monthly on her investment? If instead of earning 11%. how much would her payments need to be to have the same accumulated amount? PMT. payment = RM 150 n = 20 x 12 month = 240 month i = 11 % @ 0. How much has she accumulated.0092 (1+i) [¿ ¿ n−1] (1 + i ) FVA = PMT ¿ (1+0. Briotta was only able to earn 10% (compounded monthly).11 12 = 0. 16. 0083) 131 735.71 PMT.42 = PMP ( 755. Payment = RM 172.44 )(1.10 12 = 0.083) = 0.0083) 131 735.n = 20 x 12 month = 240 month i = 10 % @ 0.10 i (1+0.0083 0.95 .42 = 150 [¿¿ 240−1] ( 1 + ¿ 0.083 131 735.42 = PMP 761.71 ) 131 735.42 = PMP (761.