**Question #1**

Option # 1

N=7

I%=7.2

PV=-10000

PMT=0

FV=16269.09883

P/Y=1

C/Y=1

PMT:

__END__BEGIN

Option #2

N=5

I%=9

PV=-10000

PMT=0

FV=15386.23955

P/Y=1

C/Y=1

PMT:

__END__BEGIN

The first option will give him more by $882.86 (16269.09883-15386.23955)

__WHY & HOW__

The numbers in "N", "I%" and "PV" come directly from the information in the question.

"P/Y and C/Y" are 1 because the money is compounded yearly and not semi annually or quarterly. Semi annually is compounded twice a year. Quarterly is compounded four times a year.

The second Investment

#1

N=2

I%=12PV=-16269.09883

PMT=0

FV=19300.49889

P/Y=1

C/Y=1

PMT:

__END__BEGIN

George's final amount will be $19300.50 in scenario one.

#2

N=2

I%=12

PV=-15386.23955

PMT=0

FV=20407.95757

P/Y=1

C/Y=1

PMT:

__END__BEGIN

George's final amount will be $20407.96 in scenario two.

**Question #2**

When you walk home from the big bridge there is a pizza place and a chicken place. Calculate the total amount of ways home. The P(passing the pizza place), P(passing pizza and chicken place).

There are 336 ways home

The P(passing pizza place) is 38.7%(130/336)

The P(passing pizza & chicken place) is 32.7% (110/336)

Click here to see WHY? & HOW?

## 1 comments:

Eugene, this should be posted on the Developing Expert Voices blog, not here. Please delete it from this blog and move it over there.

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