HP HP-35 - Page 21

10
PROBLEMS IN FI NANCE
If YOU deposiUlI:I one dollar a~ 5% in~eres~ compounded
annually. how much would you have a~ the end of 17
years?
Value
~ (1 + Aa~el Years
Press
Comments
17
Number of years
IIIIDJ 1 7 .
1.05
05 1 + inlerest rate
III
2.29 2 0183 1 9 Amoun lafrer17
yean; ($2.29)
In 1965 a company had gross sales of $926 million. By
1972 the sales had increased to$I . 37 Billion. What is the
growth rate compounde d annually?
Pross
1 972
EllII
1965
1:1
mil
1.
37
0
9
EllII
926
IDI
6
1:1
III
(
Final
sales ) I {yearS
1 + Rale~
Initial Sales
19 7 2.
1 972.
1 965.
t..:OmmCn lS
7 Years
1428571429 RecIprocal of
period
I. 37
09 1.37 billion
1. 37 09
92 6 . 0 6 926 million
4 7 9 4 8 1
64 1
1.05 7 55 11 18
Annual growth
rate - 5.755111 8%