Find the final F value from P = $1,500 if the i% keeps changing in the...
Find the final F value from P = $1,500 if the i% keeps changing
in the next 15 years as following:
5% for the first 4 years, 8% for the next 5 years, and 10% for the
last 6 years.
Homework Answers
Given P=$1500
F=P*(F/P,5%,4)*(F/P,8%,5)*(F/P,10%,6)
F=1500*(F/P,5%,4)*(F/P,8%,5)*(F/P,10%,6)
Let us find interest factors (These can be found directly from standard interest factor tables)
(F/P,5%,4)=(1+5%)^4=1.215506
(F/P,8%,5)=(1+8%)^5=1.469328
(F/P,10%,6)=(1+10%)^6=1.771561
F=1500*1.215506*1.469328*1.771561=$4745.95
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