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Practice TVM problems

Practice TVM problems . TVM 1- quiz . Practice Problem #1. Assume that you put 328.54 dollars in an account that earns simple interest at a 14.9 percent annual rate. How much is in your account after 19 years from now?. Solution. ( SI). Answer. 1,258.64. Practice problem #2.

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Practice TVM problems

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  1. Practice TVM problems TVM 1- quiz

  2. Practice Problem #1 • Assume that you put 328.54 dollars in an account that earns simple interest at a 14.9 percent annual rate. How much is in your account after 19 years from now?

  3. Solution (SI)

  4. Answer • 1,258.64

  5. Practiceproblem#2 • You decide to deposit 617.43 dollars in an account that earns 26 percent annual interest (compounded annually). How much is in the account 33 years from now?

  6. Solution

  7. Answer • 1,267,114.08

  8. Practiceproblem#3 • If you deposit 101.7 dollars in an account today, and the account balance is 253.02 dollars 6 years from now, what annual interest rate did you receive on your funds? (assume annual compounding)

  9. Solution

  10. Answer • 16.4

  11. Practiceproblem#4 • You want to buy an used car 5 years from now when you graduate. Assuming a 3annual interest rate (compounded annually), how much must you deposit today to have exactly 4,638.57 dollars to purchase the car when you graduate?

  12. Solution

  13. Answer • 4,001.27

  14. RECITATION 3

  15. Practice Problem #1 (important for TVM) • Duff Inc. paid a 2.69 dollar dividend today. If the dividend is expected to grow at a constant 3 percent rate and the required rate of return is 9 percent, what would you expect Duff's stock price to be 2 years from now?

  16. Solution

  17. Answer • 48.99

  18. PracticeProblem #2 • Duff Inc. paid a 2.09 dollar dividend today. If the dividend is expected to grow at a constant 2 percent rate and the required rate of return is 8 percent, what would you expect Duff's stock price to be 4 years from now?

  19. Solution

  20. Answer • 38.46

  21. Good luck on your quiz!

  22. If you still have trouble understanding the problems, and how to solve them make sure to schedule an appointment with me.Mariya

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