Question
In: Finance
The future value and present value equations also help in finding the interest rate and the...
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 $9,200 will be worth $12,106.57 seven years in the future, what is the implied interest rate the investor will eam on the security-assuming that no additional deposits or withdrawals are made?
7.60% 4.00% 3.20% 1.32%
If an investment of $50,000 is earning an interest rate of 8.00%, compounded annually, then it will take _______ for this investment to reach a value of $62,985.60-assuming that no additional deposits or withdrawals are made during this time.
Which of the following statements is true-assuming that no additional deposits or withdrawals are made?
It takes 14.21 years for $500 to double if invested at an annual rate of 5%.
It takes 10.50 years for $500 to double if invested at an annual rate of 5%.
Solutions
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jeff jeffy answered 2 years agoRelated Solutions
The future value and present value equations also help in finding the interest rate and the...
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 $5,600
will be worth $8,228.24 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?
0
8.00%
0
6.40%
0
0.29%
0
6.81%
If an investment of
$35,000 is earning an interest...
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...
Finding a present value is the reverse of finding a future value.
3. Present value Finding a present value is the reverse of finding a future value. _______ is the process of calculating the present value of a cash flow or a series of cash flows to be received in the future. Which of the following investments that pay will $15,000 in three years will have a lower price today? The security that earns an interest rate of 21.75% The security that carns an interest rate of 14.50% Eric wants to invest in government securities that promise to...
Finding a present value is the reverse of finding a future value. Which of the following...
Finding a present value is the reverse of finding a
future value.
Which of the following is true about finding the present
value of cash flows?
Finding the present value of cash flows tells you what a cash
flow will be worth in future years at a specified rate of
return.
Finding the present value of cash flows tells you how much you
need to invest today so that it grows to a given future amount at a
specified rate...
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.”...
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...
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
Question 56 Compounding is the process of finding the present value of some future amount. Select...
Question 56
Compounding is the process of finding the present value of some
future amount.
Select one:
True
False
Question 57
Sales divided by net income is referred to as the profit
margin.
Select one:
True
False
Question 58
This morning, Alicia bought a ten-year 9% coupon bond that pays
interest semi-annually. She paid $994 for a $1,000 bond. If the
market interest rate on this type of bond declines to 8.5% tonight,
how much will Alicia receive for her...
Determining the present value of bonds payable Interest rates determine the present value of future amounts
Question: Determining the present value of bonds payable
Interest rates determine the present value of future amounts. (Round to the nearest
dollar.)
Requirements
1. Determine the present value of 10-year bonds payable with face value of $86,000
and stated interest rate of 14%, paid semiannually. The market rate of interest is
14% at issuance.
2. Same bonds payable as in Requirement 1, but the market interest rate is 16%.
3. Same bonds payable as in Requirement 1, but the...
what is the relationship present value and future value for a given rate of return and...
what is the relationship present value and future
value for a given rate of return and time shown in the following
equation: PV=FV/(1+r)t
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