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Group 6

Group 6. Ritchie Roi Chua Mary Jane L. Paglumotan Mark Anthony Salazar  Charlotte Tang Ramon Jose Miguel Naguiat Tong Ya(Nicole). Problem. A man pays $200 at the end of each quarter for 10 years to the Investor's Association. At the end of 10 years he has $9,200 to his credit.

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Group 6

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  1. Group 6 Ritchie Roi Chua Mary Jane L. Paglumotan Mark Anthony Salazar  Charlotte Tang Ramon Jose Miguel Naguiat Tong Ya(Nicole)

  2. Problem • A man pays $200 at the end of each quarter for 10 years to the Investor's • Association. At the end of 10 years he has $9,200 to his credit. • Interest is allowed at what rate converted quarterly? • do problem 54 for 200 payments at the end of each quarter.

  3. Solution: Galer Formula • Pv=200 • Rate= x/4 • Nper=40 • Pmt= -200 • Fv= 9,200 • Type=0

  4. Solution: Galer Formula • pv*(1+rate)nper+pmt*(1+rate*type)*((1+rate)nper-1)/rate))+fv = 0 • 200[1+(x)]^40 + (-200)[1 + (x)(0)] * [(1+(x)^40 -1)/ (x)] + 9200 = 0 • 200[1+(x)]^40 + (-200 )(1+0)([(1+(x)^40 -1)/ (x)] ) = -9200 • X=0.32% (RATE PER YEAR) • RATE PER PERIOD = 0.8%

  5. Solution: Excel • NPER = 40 • PMT = -200 • PV = 200 • FV = 9,200 • TYPE = 0 • = RATE (NPER, PMT, PV, FV, TYPE) • = RATE (40,-200,200,9200,0) • = .008 • = 0.8% (RATE PER PERIOD)

  6. Time Diagram

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