Chap 4 Knowledge Check Answer Key
Knowledge Check 4.1
| Time | Interest | Balance |
| 0 | $8,000.00 | |
| 3 months | $320.00 | $8,320.00 |
| 6 months | $332.80 | $8,652.80 |
| 9 months | $346.11 | $8,998.91 |
Knowledge Check 4.2
- $8,000(1.04)3 = $8,998.91
- $1,000(1.10)2 = $1,1210
- $2,500(1.0066666667)48 = $3,439.17
Knowledge Check 4.3
1. [latex]\frac{$ 5,849.29 }{1.04^4} =$ 5,000[/latex]
2. [latex]\frac{$ 8,998.91 }{1.04^3} =$ 8,000[/latex]
3. [latex]\frac{$ 50,000 }{1.085^6} =$$30,647.25[/latex]
Knowledge Check 4.4
a. With i = 0.07, n = 3 × 2, FV = $9,209.76
b. n=(l0+12)× 2, FV=$10,309.11,
when PV = $6,000, n = 4 × 2, FV = $10,309.12
The difference is due to rounding off the FV in (a).
Knowledge Check 4.5
1. $14,638.67
| B/E | P/Y | C/Y | N | I/Y | PV | PMT | FV |
|---|---|---|---|---|---|---|---|
| END | 12 | 16 | 15 | 12,000 | 0 | CPT |
2. $7,646,61
| B/E | P/Y | C/Y | N | I/Y | PV | PMT | FV |
|---|---|---|---|---|---|---|---|
| END | 4 | 16 | 15 | CPT | 0 | -9,500 |
3. 6% nominal
| B/E | P/Y | C/Y | N | I/Y | PV | PMT | FV |
|---|---|---|---|---|---|---|---|
| END | 12 | 12 | CPT | 80,000 | 0 | -84,934.22 |
