Question

In: Finance

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 = ?

Solutions

Expert Solution


Related Solutions

Which is the bigger factor in time value of money calculations, TIME or INTEREST rate? Try...
Which is the bigger factor in time value of money calculations, TIME or INTEREST rate? Try out a couple examples at say 3, 5, 10 years and 3, 5, 10 % interest on $10,000. Which was the biggest effect?!
3. Future value The principal of the time value of money is probably the single most...
3. Future value The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a future value. The process for converting present values into future values is called   . This process requires knowledge of the values of three of four time-value-of-money variables. Which of the following is not one of these variables? The duration of the deposit (N) The trend between the...
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
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.
The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations.
Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $12,800 will be worth $18,807.40 five years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? О 8.00% О 6.40% О 1.47% О 0.29% If an investment of $45,000...
For a given time period and for the same future value amount, the higher the interest...
For a given time period and for the same future value amount, the higher the interest rate the lower the present value. T or F You are trying to save up to buy a mountain bike worth $5,900. You can invest $200 a month in your bank that pays 4.4% interest on its accounts. How many years will it be before you have enough to purchase the mountain bike? Tim has his heart set on buying a million-dollar house when...
The value or amount of Money at some future time
The value or amount of Money at some future time
Why is interest rate important in determining the future value of money? What are your opportunity...
Why is interest rate important in determining the future value of money? What are your opportunity cost associated with buying a home vs renting?
QUESTION: For a given positive interest rate, the future value of $100 increases with the passage...
QUESTION: For a given positive interest rate, the future value of $100 increases with the passage of time. Thus, the longer the period of time, the greater the future value. ANSWER OPTIONS: True False You need to specifically state IN THE SUBJECT LINE if the answer is TRUE or FALSE.   EXAMPLES OF INADEQUATE RESPONSES: “I think the answer is False.” OR “The correct answer is “C.” Postings must be no less than 200 words in length to be considered. Any...
Write a Java method that computes the future investment value at a given interest rate for...
Write a Java method that computes the future investment value at a given interest rate for a specified number of years. Your method should return the future investment value after calculation. The future investment is determined using the formula below:     futureInvestmentValue = investmentAmount * (1+monthlyInterestRate)numberOfYears*12 You can use the following method header: public static double futureInvestmentValue (double investmentAmount, double monthlyInterestRate, int years);
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT