help

Using the equations given in class: 1) compound interest FV:FV=PV(1+r)t 2) compound interest PV:PV=FV/{(1+r)t} 3) simple interest: FV=PV(1+rt) 4) Perpetuity PV: PV=C/r 5) Perpetuity C: C=Pr 6) Growing Perpetuity PV: PV = C/ (r-g) Solve the following: 1) PV=$10,000,r=6%,t=10 years 1a) Find FV using compound interest. 1b) Find FV using simple interest 2) FV=$100,000,r=10%,t=40 years Find the PV that would achieve this FV (We use compound interest always unless it says simple interest) Perpetuities: 3) C=500,r=8%, find the PV 4) C=500,r=8%g=3% find the PV 5) PV=20,000,r=8%, find the C