Hey guys what do i pit in my finace solver for all of question 8 and 9 as i got it wrong
And for the second picture where its chapter 8 review how do i do question 7c
Thank you
(Ps wtf i cant upload thoose 2 pictures cause they are to large apparently)
http://imgur.com/a/a4UsE
Okay Hun,
Financial modelling can be daunting, but it's simple:
So for question 7c this is how you would do it:
You can either keep putting the recurrence relation into your calculator 12 times until you get the answer, however this would be time-consuming and opens the doors for error. An easier way to do this would be: using the nth term rule : Vn+1= (1+R/100)^n * Vo ( if you can't understand this formula, it is on page 286 on your textbook under COMPOUND INTEREST LOANS AND INVESTMENT)
Then, it's simple, you substitute the values : Vn + (1+ 6.8/12/100)^12* 30000
And you will end up with :$ 32104.80. For this question I think you're a bit confused you don't use the finance solver, just use the nth term
If you are referring to the 7d, then you would use the finance solver for that one and this is how you would do it:
N: 18 (compounded for 18 months)
I(%): 6.8
PV: 30000 (initial amount that we loaned, remember it's positive because we borrowed it)
Pmt:0
FV: ? (this is what we want to find out)
Ppy/Cpy: 12
And when you press enter, voila!! you get your answer :$ 33211.94