Suggestion: See the Exponential Expressions on My Blackboard Page

Name:______

Class Time______

Answer 1. ______

Answer 2. ______

Answer 3. ______

Homework Number 2 – TVM

Due Wednesday, March 9

These problems must be solved algebraically without using the TVM functions on your calculator. Put your answers above but show your calculations below.

Suggestion: See the Exponential Expressions on my Blackboard page.

1.What is the present value of $637 received in three years if compounded at 6.4% p.a.?

2. If you put $845 in a savings account earning 6.4% p.a. compounded semiannually, how much will you have at the end of two years?

3. We want to withdraw $627 at the end of each year for three years beginning one year from now and have nothing left at the end of the third year. How much must we deposit today if it earns 6.4% p.a.?

320-S05-HW-2#Q&E