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Author Question: The TVM equation FV = PV (1 + r)n can be algebraically manipulated to solve for any of the ... (Read 23 times)

jrubin

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on: Jul 10, 2018
The TVM equation FV = PV  (1 + r)n can be algebraically manipulated to solve for any of the variables EXCEPT for the time period n.
 
  Indicate whether the statement is true or false.

Question 2

100 invested at a rate of 5 for 10 years has the same future value as 100 invested at 10 compounded annually for 5 years.
 
  Indicate whether the statement is true or false.


Dominic

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: FALSE
Explanation: The TVM equation can be used to solve for any of the variables; FV, PF, r, or n.

Answer to Question 2

Answer: FALSE
Explanation: 100  (1.10)5 = 161.05, but 100  (1.05)10 = 162.89
MODE = END
INPUT 5 10 -100 0 ?
KEY N I/Y PV PMT FV
CPT 161.05
MODE = END
INPUT 10 5 -100 0 ?
KEY N I/Y PV PMT FV
CPT 162.89


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