4 4 pts Ciclin retig wing i the tables ii the appropriate eq

4. 4 pts Ciclin retig wing i) the tables ii) the appropriate equation and iii) the spreadsheet values. (F/P, 5%, 8) (AP, 6%, 7)

Solution

(F/P,5%,8)

In this value we are trying to find Future Value given Present Value therefore we will use FVIF table and then column representing 8% and row representing 5

Hence (F/P,5%,8)=1.4693

Using Apprepriate eqution let P=1 then P*(F/P,5%,8) =(1+5%)^8=1.4775

Spreadsheet will use the same formula stated above

(A/P,6%,7)

Calculating Annuity payment using Present Value

Hence (A/P,6%,7)=0.1795

Appropriate equation (i/(1-(1+i)^(-n))=0.06/(1-(1.06)*(-7))=0.17915

Same formula as above can be used in spreadsheet