Financial math, Compound Pound Interest help with steps?!
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This is the question and below I have the answers but I don't understand how to get those answers.
You receive the following offers for the sale of your old home:
(a) $€ 30 000$ on 31.12.17, $€ 30 000$ on 31.12.20, $€ 30 000$ on 31.12.
(b) $€ 20 000$ on 31.12.17, $€ 25 000$ on 31.12.18, $€ 45 000$ on 31.12.23
Which offer is best for the seller (compound interest at $r=6%$)?
Answers:
(a) $PVA = € 76337.39$
(b) $PVB = € 75308.13$
statistics
edited Nov 18 at 2:25
hanszimmer
195
asked Nov 17 at 23:52
Vanessa La
61
add a comment |
up vote
-1
down vote
favorite
This is the question and below I have the answers but I don't understand how to get those answers.
You receive the following offers for the sale of your old home:
(a) $€ 30 000$ on 31.12.17, $€ 30 000$ on 31.12.20, $€ 30 000$ on 31.12.
(b) $€ 20 000$ on 31.12.17, $€ 25 000$ on 31.12.18, $€ 45 000$ on 31.12.23
Which offer is best for the seller (compound interest at $r=6%$)?
Answers:
(a) $PVA = € 76337.39$
(b) $PVB = € 75308.13$
statistics
edited Nov 18 at 2:25
hanszimmer
195
asked Nov 17 at 23:52
Vanessa La
61
The last piece of data in offer (a) appears to be missing the year.
– Gerry Myerson
Nov 18 at 0:29
add a comment |
up vote
-1
down vote
favorite
up vote
-1
down vote
favorite
This is the question and below I have the answers but I don't understand how to get those answers.
You receive the following offers for the sale of your old home:
(a) $€ 30 000$ on 31.12.17, $€ 30 000$ on 31.12.20, $€ 30 000$ on 31.12.
(b) $€ 20 000$ on 31.12.17, $€ 25 000$ on 31.12.18, $€ 45 000$ on 31.12.23
Which offer is best for the seller (compound interest at $r=6%$)?
Answers:
(a) $PVA = € 76337.39$
(b) $PVB = € 75308.13$
statistics
edited Nov 18 at 2:25
hanszimmer
195
asked Nov 17 at 23:52
Vanessa La
61
This is the question and below I have the answers but I don't understand how to get those answers.
You receive the following offers for the sale of your old home:
(a) $€ 30 000$ on 31.12.17, $€ 30 000$ on 31.12.20, $€ 30 000$ on 31.12.
(b) $€ 20 000$ on 31.12.17, $€ 25 000$ on 31.12.18, $€ 45 000$ on 31.12.23
Which offer is best for the seller (compound interest at $r=6%$)?
Answers:
(a) $PVA = € 76337.39$
(b) $PVB = € 75308.13$
statistics
statistics
edited Nov 18 at 2:25
hanszimmer
195
asked Nov 17 at 23:52
Vanessa La
61
edited Nov 18 at 2:25
hanszimmer
195
asked Nov 17 at 23:52
Vanessa La
61
edited Nov 18 at 2:25
hanszimmer
195
edited Nov 18 at 2:25
hanszimmer
195
edited Nov 18 at 2:25
hanszimmer
195
195
asked Nov 17 at 23:52
Vanessa La
61
asked Nov 17 at 23:52
Vanessa La
61
asked Nov 17 at 23:52
Vanessa La
61
61
The last piece of data in offer (a) appears to be missing the year.
– Gerry Myerson
Nov 18 at 0:29
add a comment |
The last piece of data in offer (a) appears to be missing the year.
– Gerry Myerson
Nov 18 at 0:29
The last piece of data in offer (a) appears to be missing the year.
– Gerry Myerson
Nov 18 at 0:29
The last piece of data in offer (a) appears to be missing the year.
– Gerry Myerson
Nov 18 at 0:29
add a comment |
1 Answer
1
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1
down vote
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For (a)
$$PVA = frac{30000cdot 1.06^6+30000cdot 1.06^3 + 30000}{1.06^6} = 76337.39$$
answered Nov 18 at 1:24
Phil H
3,8902312
add a comment |
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
1
down vote
accepted
For (a)
$$PVA = frac{30000cdot 1.06^6+30000cdot 1.06^3 + 30000}{1.06^6} = 76337.39$$
answered Nov 18 at 1:24
Phil H
3,8902312
add a comment |
up vote
1
down vote
accepted
For (a)
$$PVA = frac{30000cdot 1.06^6+30000cdot 1.06^3 + 30000}{1.06^6} = 76337.39$$
answered Nov 18 at 1:24
Phil H
3,8902312
add a comment |
up vote
1
down vote
accepted
up vote
1
down vote
accepted
For (a)
$$PVA = frac{30000cdot 1.06^6+30000cdot 1.06^3 + 30000}{1.06^6} = 76337.39$$
answered Nov 18 at 1:24
Phil H
3,8902312
For (a)
$$PVA = frac{30000cdot 1.06^6+30000cdot 1.06^3 + 30000}{1.06^6} = 76337.39$$
answered Nov 18 at 1:24
Phil H
3,8902312
answered Nov 18 at 1:24
Phil H
3,8902312
answered Nov 18 at 1:24
Phil H
3,8902312
answered Nov 18 at 1:24
Phil H
3,8902312
3,8902312
add a comment |
add a comment |
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The last piece of data in offer (a) appears to be missing the year.
– Gerry Myerson
Nov 18 at 0:29