Question
In: Finance
Find the following values using the equations and then a financial calculator.
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 $400 compounded for 1 year at 7%.
b. An initial $400 compounded for 2 years at 7%
c. The present value of $400 due in 1 year at a discount rate of 7%.
d. the present value of $400 due in 2 years at a discount rate of 7%
Solutions
Expert Solution
Question a
Future value=Present value*(1+interest rate)^number of years
=$400(1.07)^1=$428
Question b
Future value=Present value*(1+interest rate)^number of years
=$400*(1.07)^2=$457.96
Question c
Present value=Future value/(1+discount rate)^number of years
=$400/(1.07)^1=$373.83
Question d
Present value=Future value/(1+discount rate)^number of years
=$400/(1.07)^2=$349.38
jeff jeffy answered 2 years agoRelated Solutions
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calculator, you can enter the known values and then press the
appropriate key to find the unknown variable. Then, without
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1.Find the following values, using the equations, and then work the problems using a financial calculator...
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then work the problems using a financial calculator to check your
answers. Disregard rounding differences. (Hint: If you are
using a financial calculator, you can enter the known values and
then press the appropriate key to find the unknown variable. Then,
without clearing the TVM register, you can "override" the variable
that changes by simply entering a new value for it and then
pressing the key for the unknown variable to obtain...
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financial calculator. Compounding/discounting occurs annually. Do
not round intermediate calculations. Round your answers to the
nearest cent.
An initial $200 compounded for 1 year at 4%.
An initial $200 compounded for 2 years at 4%.
The present value of $200 due in 1 year at a discount rate of
4%.
The present value of $200 due in 2 years at a discount rate of
4%.
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not round intermediate calculations. Round your answers to the
nearest cent. An initial $600 compounded for 1 year at 9%. An
initial $600 compounded for 2 years at 9%. The present value of
$600 due in 1 year at a discount rate of 9%. The present value of
$600 due in 2 years at a discount rate of 9%.
Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do...
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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%.
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 6%.
$
An initial $600 compounded for 2 years at 6%.
$
The present value of $600 due in 1 year at a discount rate of
6%.
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The present value of $600 due in 2 years at a discount rate of
6%.
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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 $500
compounded for 1 year at 4%.
$
An initial $500
compounded for 2 years at 4%.
$
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$500 due in 1 year at a discount rate of 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%.
$
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