Question
In: Finance
Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do...
Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent.
a. An initial $600 compounded for 1 year at 6%.
b. An initial $600 compounded for 2 years at 6%.
c. The present value of $600 due in 1 year at a discount rate of 6%.
d. The present value of $600 due in 2 years at a discount rate of 6%.
Solutions
Expert Solution
| Equation | Formula | ||
| a) | Future value | $ 636.00 | $ 636.00 |
| =600*(1+6%) | =FV(6%,1,,-600) | ||
| b) | Future value | $ 674.16 | $ 674.16 |
| =600*(1+6%)^2 | =FV(6%,2,,-600) | ||
| c) | Present value | $ 566.04 | $ 566.04 |
| =600/(1+6%) | =PV(6%,1,,-600) | ||
| d) | Present value | $ 534.00 | $ 534.00 |
| =600/(1+6%)^2 | =PV(6%,2,,-600) |
jeff jeffy answered 1 year agoRelated Solutions
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nearest cent.
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calculator. Compounding/discounting occurs annually. Do not round
intermediate calculations. Round your answers to the nearest
cent.
An initial $500
compounded for 1 year at 4%.
$
An initial $500
compounded for 2 years at 4%.
$
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Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do...
Find the following values using the equations and then
a financial calculator. Compounding/discounting occurs annually. Do
not round intermediate calculations. Round your answers to the
nearest cent.
An initial $600 compounded for 1 year at 8%.
$
An initial $600 compounded for 2 years at 8%.
$
The present value of $600 due in 1 year at a discount rate of
8%.
$
The present value of $600 due in 2 years at a discount rate of
8%.
$
Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do...
Find the following values using the equations and then
a financial calculator. Compounding/discounting occurs annually. Do
not round intermediate calculations. Round your answers to the
nearest cent.
An initial $600 compounded for 1 year at 3%.
$
An initial $600 compounded for 2 years at 3%.
$
The present value of $600 due in 1 year at a discount rate of
3%.
$
The present value of $600 due in 2 years at a discount rate of
3%.
$
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Find the following values using the equations and then a
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nearest cent.
An initial $200 compounded for 1 year at 4%.
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The present value of $200 due in 1 year at a discount rate of
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