Compute the future value of $2000 compounded forward for 7 years at a rate of 16...

Compute the future value of $2000 compounded forward for 7 years at a rate of 16 percent compounded annually, and then at 16 percent compounded quarterly.

Expert Solution

	Future value - Annual compounding	PV×(1+r)^n

	Here,

A	Interest rate per annum	16.0%
B	Number of years	7
C	Number of compoundings per per annum	1
A÷C	Interest rate per period ( r)	16.0%
B×C	Number of periods (n)	7
	Present value (PV)	$ 2,000

	Future value - Annual compounding	$ 5,652.44
		2000×(1+16%)^7

	Future value - Quarterly compounding	PV×(1+r)^n

	Here,

A	Interest rate per annum	16.0%
B	Number of years	7
C	Number of compoundings per per annum	4
A÷C	Interest rate per period ( r)	4.0%
B×C	Number of periods (n)	28
	Present value (PV)	$ 2,000

	Future value - Quarterly compounding	$ 5,997.41
		2000×(1+4%)^28

jeff jeffy answered 1 year ago

a: Compute the future value of $1,900 continuously compounded for 8 years at an APR of...

a: Compute the future value of $1,900 continuously compounded for 8 years at an APR of 10 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b: Compute the future value of $1,900 continuously compounded for 5 years at an APR of 9 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c: Compute the future value of $1,900 continuously compounded for 10 years at an...

7- Compute the present value for the following: Future Value: 140987 Years: 26 Interest rate: 11...

7- Compute the present value for the following: Future Value: 140987 Years: 26 Interest rate: 11 Provide answer with two decimals, i.e. 32.16) 8- Solve for the unknown number of years: (Use two decimals, i.e. 32.16) PV: 2,589 FV: 80,008 Rate:8% # Years: 9- Solve for the unknown number of years: (Use two decimals, i.e. 32.16) PV: 2,555 FV: 62,387 Rate:16% # Years: 10- Solve for the unknown number of years: (Use two decimals, i.e. 32.16) PV: 3,590 FV: 21,073

Compute the future value of: An initial $2,000 compounded annually for 10 years at 8% An...

Compute the future value of: An initial $2,000 compounded annually for 10 years at 8% An initial $2,000 compounded annually for 10 years at 10% An annuity of $2,000 for 10 years at 8% An annuity of $2,000 for 10 years at 10%

Q1: For each of the following: Compute the Future value (FV) Present Value Years Interest rate...

Q1: For each of the following: Compute the Future value (FV) Present Value Years Interest rate Future Value $ 3,159 84,53 89,305 T 16 19 26 13% Y 9 5 Compute Present Value 15 8 13 25 7% 11 10 13 $ 17,328 41,517 7903,82 647,816 Compute the interest rate Present Value Years Interest rate Future Value $ 715 905 15,000 70,300 11 8 23 16 $ 1,381 1,718 141,832 312,815 Q2: Compute the Future value of $ 1,000 continuously...

Problem 4-2 Calculating Future Values a. Compute the future value of $2,000 compounded annually for 10...

Problem 4-2 Calculating Future Values a. Compute the future value of $2,000 compounded annually for 10 years at 8 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ b. Compute the future value of $2,000 compounded annually for 10 years at 11 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ c. Compute the future value of $2,000 compounded annually...

Problem 16 Find the future value of 100,000 for 15 years. The current five-year rate is...

Problem 16 Find the future value of 100,000 for 15 years. The current five-year rate is 6%. Rates for the second and third five-year periods and expected to be 6.5% and 7.5%, respectively. The answer is: Problem 17 If farm land is currently worth 1,750 per acre and is expected to increase in value at a rate of 5 percent annually, what will it be worth in 5 years? In 10 years? In 20 years by factor formula and table?...

What is the future value of $6,000 invested for 5 years at 10% compounded annually?

What is the future value of $6,000 invested for 5 years at 10% compounded annually? A. 9,255 B. 8,902 C. 9,751 D. 9,663

a. Compute the future value at the end of 4 years of $900 invested today at...

a. Compute the future value at the end of 4 years of $900 invested today at an interest rate of 6 per cent and describe two business uses for this specific type of computation. b. Compute the future value at the end of 4 years of $900 put away in a savings account each of four years at an interest rate of 6 per cent and describe two business uses for this specific type of computation. c. Explain the time...

a. Compute the amount to be invested to meet the future liability noted in the data. This future liability is due in 7 years.

IMMUNIZATION USING INDIVIDUAL BONDS Yield to maturity (Expected/Current) 9% Number of Years to Future Liability 11 Future Liability $ 3,600.00 Amount Invested to Cover Future Liability Bond 1 Bond 2 Bond 3 Coupon rate 8.00% 12.000% 6.00% Maturity 12 18 30 Face value 1,000 1,000 1,000 a. Compute the amount to be invested to meet the future liability noted in the data. This...

67. a. Compute the Future value for Principal value of $17,500 with annual interest rate 7.75%...

67. a. Compute the Future value for Principal value of $17,500 with annual interest rate 7.75% compounded monthly at the end of 8 years. a. $30,495.25 b. $31,329.20 c. $32,466.45 d. $33,110.50 b. Alec and Lexi compute that they will need $20,000 in 4years to build to remodel their kitchen. How much should they invest now at 5.5% interest compounded quarterly to have the $20,000 in 4years? a. $ 13,328.60 b. $ 11,035.10 c. $13,071.10 d. $16,074.45

Question