2 Approximate FP 8 37 using the values from Appendix A at FP

2. Approximate (F/P, 8%. 37) using the values from Appendix A at (F/P,8%.35) and (F/P,8%,40) a. 19.3456 b. 17.2456 c. 17.5610 d. Write your answer if it is different from the above

Solution

A = P(1+0.08)^35

A1 = P(1+0.08)^40

A1/A = (1.08)^5 = 1.46

A2 = P(1.08)^37 = P * 1.46*7 = 17.24 P

B) 17.24