Chapter 5
If unknown is k or n, can't solve equations algebraically. Solve for factor and use table. Example 5-3. What interest rate will. grow $850 into $983.96 in three years? Solution: PV = FVn[PVFk,n] $850.00 = $983.96 [PVFk,3] PVFk,3 = $850.00 / $983.96 = .8639. Find .8639 in Table A-2, along the row for three years and read 5% at top. Example 5-4 ................
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