Find the future value of $20000 CD for 1000 days at a 6.25% effective rate. Answer...

Find the future value of $20000 CD for 1000 days at a 6.25% effective rate. Answer is $23613.70 but I don’t know how to get there. Effective rate=(1- r/c)^c -1

Expert Solution


Principal	20,000.00
Interest	6.25%
Time in days	1,000.00

Amount=	Principal * (1+Interst rate)^time
Amount=	20000*(1+6.25%)^(1000/365)
Amount=	23,613.70

ekkarill92 answered 1 year ago

Time Value of Money Calculations Given: Principal = $1000 Future Value = $1000 Interest rate =...

Time Value of Money Calculations Given: Principal = $1000 Future Value = $1000 Interest rate = 10% Annuity Pmt = $1000 N = 10 years 1. FV of Lump Sum = ? 2. PV of Lump Sum = ? 3. FV of Annuity = ? 4. FV of Annuity Due = ? 5. PV of Annuity = ? 6. PV of Annuity Due = ? 7. PV of Perpetuity = ?

what is the future value of 1000 deposited for 5 years, if the interest rate is...

what is the future value of 1000 deposited for 5 years, if the interest rate is 10% per annuam compounded, daily, annually, monthly, contuously, weekly, weekly.

Explain the difference between present value and future value. How can effective rate of interest be...

Explain the difference between present value and future value. How can effective rate of interest be different that the nominal or stated rate of interest? How can you tell in a word problem if the problem is calling for a future value amount or a present value amount? 4. Explain the difference between an ordinary annuity and an annuity due. Begin by explaining what an annuity is. 5.Explain how you use the ordinary annuity table to calculate an annuity "due.”...

1. Future Value. what is the future value in six years of $1000 invested in an...

1. Future Value. what is the future value in six years of $1000 invested in an account with a stated annual interest rate of 9 percent a. compounded annually? b. compounded semi annually? c. compounded monthly? d. compounded continuously? e. why does the future value increase as the compounding period shortens? Q2. present value and break even interest. consider a firm with a contract to sell an asset for $115,000 three years from now. The asset cost $76,000 to produce...

Please answer within the hour 4.) Find the Effective Interest Rate for the Stated Rate of...

Please answer within the hour 4.) Find the Effective Interest Rate for the Stated Rate of 0.05 compounded 11 times per year. (Write Down your answer with 5 decimal places, Ex. if the Effective rate is 3.294%, your answer should be 0.03294.) 5.)What would be the monthly payment on a 3 year loan of $37,967 if the interest rate is 0.06 compounded monthly?(Remember, as an example 5.00% equals 0.0500) 6.)A new project is estimated to cost $40,263, its expected net...

Find the effective rate of the compound interest rate or investment. (Round your answer to two...

Find the effective rate of the compound interest rate or investment. (Round your answer to two decimal places.) A $50,000 zero-coupon bond maturing in 9 years and selling now for $42,035. determine the amount due on the compound interest loan. (Round your answers to the nearest cent.) $14,000 at 4% for 15 years if the interest is compounded in the following ways. (a) annually $ caculate the present value of the compound interest loan. (Round your answers to the nearest...

Find the accumulated value of $4,715 invested for 13 years if the annual effective rate of...

Find the accumulated value of $4,715 invested for 13 years if the annual effective rate of discount is 5% for the first 7 years and a nominal rate of discount of 3.8% per year compounded bi-monthly (i.e., every two months) is used thereafter

One bank advertises an interest rate on a certificate of deposit (CD) with a 5.6% effective...

One bank advertises an interest rate on a certificate of deposit (CD) with a 5.6% effective annual rate. If $1000 were invested in this CD today, what would be the future value in 5 years? Report the answer to at least 4 significant figures.

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...

You just received a bonus of ?$1000. a. Calculate the future value of ?$1000?, given that...

You just received a bonus of ?$1000. a. Calculate the future value of ?$1000?, given that it will be held in the bank for 8 years and earn an annual interest rate of 7 percent. What is the future value of ?$1000 in a bank account for 8 years at an annual interest rate of 7 ?percent? $________?(Round to the nearest? cent.) b. Recalculate part ?(a?) using a compounding period that is? (1) semiannual and? (2) bimonthly. c. Recalculate parts...

Question