Question
In: Accounting
1) Determine the answer to each of the following questions. 1a. Find the Future Value of...
1) Determine the answer to each of the following
questions.
1a. Find the Future Value of $2500 invested today at 11% for
10 years.
1b. Find the Future Value of $2500 invested today at 11% for
30 years.
1c. Find the Present Value of $6000 received 10 years from
today if the discount rate is 5%.
1d. Find the Present Value of $6000 received 10 years from
today if the discount rate is 10%.
1e. Find the Future Value of $3000 per year (at the end of
each year) invested at 6% for 30 years.
1f. Find the Future Value of $3000 per year (at the end of
each year) invested at 12% for 30 years.
1g. Find the Present Value of $4000 per year (at the end of
each year) if the discount rate is 15% for 20 years.
1h. Find the Present Value of $4000 per year (at the end of
each year) if the discount rate is 15% for 40 years.
2) Find the interest rates implied by each of the
following:
2a. You borrow $1500 today and promise to repay the loan by
making a single payment of $2114.00 in 5 years.
2b. You invest $500 today and receive a promise of receiving
back $193.50 for each of the next 4 years.
3) If $2000 is invested today at a 12% nominal interest rate,
how much will it be worth in 15 years if interest is
compounded
3a. Annually
3b. Quarterly
3c. Monthly
3d. Daily (365-days per year)
4) How long will it take your money to triple given the
following interest rates?
4a. 5%
4b. 10%
4c. 15%
5) After graduating from college you make it big — all because
of your success in business finance. You decide to endow a
scholarship for needy finance students that will provide $5000 per
year indefinitely, beginning 1 year from now. How much must be
deposited today to fund the scholarship under the following
conditions.
5a. The interest rate is 10%
5b. The interest rate is 10% and the first payment is made 6
years from today instead of 1 year from today.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Find the present value of $725 due in the future under each of
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Round your answers to the nearest cent.
15% nominal rate, semiannual compounding, discounted back 5
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$
15% nominal rate, quarterly compounding, discounted back 5
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$
15% nominal rate, monthly compounding, discounted back 1
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$
2.
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item
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Interest Rate
Percentage
No. of Periods
1
15,000.00
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Future Value of an Annuity Find the future value of the following annuities. The first payment...
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Find the present value of $350 due in the future under each of the following conditions....
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the following conditions. Do not round intermediate calculations.
Round your answers to the nearest cent.
6% nominal rate, semiannual compounding, discounted back 5
years.
$
6% nominal rate, quarterly compounding, discounted back 5
years.
$
6% nominal rate, monthly compounding, discounted back 1
year.
$
Find the future value for each of the following scenarios, where m is the periodic deposit...
Find the future value for each of the following scenarios, where
m is the periodic deposit and r is the interest
rate.
compounding
time
future
interest
m
r
frequency
in years
value
earned
$450
4.1%
annually
15
$
$
$425
6.9%
semiannually
13
$
$
$350
6.5%
quarterly
13
$
$
$100
6.4%
monthly
6
$
$
$250
7.7%
weekly
6
$
$
Find the future value for each of the following scenarios, where m is the periodic deposit...
Find the future value for each of the following scenarios, where
m is the periodic deposit and r is the interest
rate.
compounding
time
future
interest
m
r
frequency
in years
value
earned
$275
5.7%
annually
9
$
$
$275
4.9%
semiannually
11
$
$
$450
2.1%
quarterly
14
$
$
$375
3.7%
monthly
14
$
$
$200
7.5%
weekly
8
$
$
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Thank you!
Find the future value of the following ordinary annuities:
Find the future value of the following ordinary annuities:
$600 per year for 10 years at 10%
$300 per year for 5 years at 5%
$600 per year for 5 years at 0%
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