If you invest $9, 000 today, how much will you have a. In 2 years at 9 percent? b. In 7 years at 12 percent? c. In 25 years at 14 percent? d. In 25 years at 14 percent(compounded semiannually )? Solution: ppendix a FVEPVXFVIE a.$9.000x1.188=$10692 b.$9,000x2211=$19899 c.$9,000X26462=$238,158 d.$9000x29457=$265,113(7%,50 periods Your uncle offers you a choice of $30,000 in 50 years or $95 today. If money discounted at 12 percent, which should you choose? Solution: appendix b PV=FVX PVIF(12%, 50 periods) PV=$30.000X.003=$90 Choose $95 today CopyrightC 2005 by The McGray-Hill Companies, Inc. -308Copyright © 2005 by The McGraw-Hill Companies, Inc. S-308 9-3. If you invest $9,000 today, how much will you have: a. In 2 years at 9 percent? b. In 7 years at 12 percent? c. In 25 years at 14 percent? d. In 25 years at 14 percent (compounded semiannually)? Solution: Appendix A FV = PV x FVIF a. $9,000 x 1.188 = $ 10,692 b. $9,000 x 2.211 = $ 19,899 c. $9,000 x 26.462 = $238,158 d. $9,000 x 29.457 = $265,113 (7%, 50 periods) 9-4. Your uncle offers you a choice of $30,000 in 50 years or $95 today. If money is discounted at 12 percent, which should you choose? Solution: Appendix B PV = FV x PVIF (12%, 50 periods) PV = $30,000 x .003 = $90 Choose $95 today