B. Complete the table by finding the unknown. Present Value...

B. Complete the table by finding the unknown. Present Value (P) | Rate (r) | Time (t) | Interest (I) | Maturity Value (F) 8,000 | 8% | 6 years | (6) | (7) 5,000 | (8) | 1 month | (9) | 6000 (10) | 12% | 5 years and 3 months | | 400,000

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Transcript

00:01 So the relationship between maturity value f and present value or principle invested is that f is equal to p times 1 plus your interest rate r to the t.

00:14 The t is the number of years of your investment.

00:19 And r is the interest rate as a decimal.

00:33 And then let's see here.

00:35 We have our interest amount.

00:37 It's going to be the maturity value minus the amount invested.

00:42 And your interest rate is going to be, let's see here, f divided by p to the 1 over t minus 1.

01:02 And i derived that from this formula here.

01:04 So if i have my table here, p, r, t, i, n, f.

01:18 For the first one i have 8 ,000.

01:21 I have 8 % which is 0 .08 as a decimal.

01:25 I have six years.

01:26 I have a future value of...

01:30 No, it doesn't tell me.

01:32 Okay.

01:34 So then the future value is going to be 8 ,000 times 1 .08 to the sixth which is equal to $12 ,694 .99.

01:53 That means that your interest is going to be the difference between this and this which is $4 ,694 .99.

02:05 And then for the second row i have 5 ,000 here.

02:11 I have 6 ,000 here.

02:14 I have one month as my time, so that is 1 12th of a year.

02:20 My interest then is going to be this amount minus that amount...

Question

B. Complete the table by finding the unknown. Present Value (P) | Rate (r) | Time (t) | Interest (I) | Maturity Value (F) 8,000 | 8% | 6 years | (6) | (7) 5,000 | (8) | 1 month | (9) | 6000 (10) | 12% | 5 years and 3 months | | 400,000

Please give Ace some feedback