Determine the numerical value of the following factors using (a) linear interpolation, (b) the formula, and (c) the spreadsheet function from Figure 2-9.
 FIGURE 1.png)
(a) 1. Interpolate between i = 8% and i = 9% at n = 15:
0.4/1 = x/(0.3152 – 0.2745)
x = 0.0163
(P/F,8.4%,15) = 0.3152 – 0.0163
= 0.2989
2. Interpolate between i = 16% and i = 18% at n = 10:
1/2 = x/(0.04690 - 0.04251)
x = 0.00220
(A/F,17%,10) = 0.04690 – 0.00220
= 0.04470
Solution continued on the next page....
(b) 1. (P/F,8.4%,15) = 1/(1 + 0.084)15
= 0.2982
2. (A/F,17%,10) = 0.17/[(1 + 0.17)10 - 1]
= 0.04466
(c) 1. = -PV(8.4%,15,,1) displays 0.29824
2. = -PMT(17%,10,,1) displays 0.04466
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