Log in
Finance
1
answer
0
watching
147
views
11 Apr 2019

home / study / questions and answers / business / finance / manually calculate the value of the investment, ... Your question has been answered! Rate it below. Let us know if you got a helpful answer. . Question please give the formula for each question. I didn't understand how you got your answers to these questions. thanks. Manually calculate the value of the investment, show each years calculation. How much would a $1,000 investment be worth at the end of 3 years assuming a rate of 5%., Calculate the future value. Principal invested today-$1,000 at 7% rate in 8 years., Calculate the present value. Principle future value- $10,000 at a rate of 6% for 16 years., Calculate the present value of annuity of receiving $5.00 each year for the next 12 years with interest rate of 7%., Calculate the future value of annuity of investing $6,000 each year starting now for 10 years at 5% interest rate., How much would you pay today to receive $15,000 in 8 years? Assume a 5% interest rate., How much would your CD of $1,000 be worth in 6 years at an interest rate of 4%?, How much would you pay today for an investment in which you would receive $5,000 each year for the next 7 years? Assume an interest rate of 6%., If you save $10,000 per year for the 4 years assuming an interest rate of 7%, how much money would you have?, Suppose you win a small lottery. You can receive $9,000 now or receive $2,100 a year for the next 5 years. Assume 6% interest rate. Which method would be the best choice?, Calculate the effective annual rate of 12% assuming quarterly compounding,

Watch
1
answer
0
watching
147
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Nestor Rutherford
Nestor RutherfordLv2
12 Apr 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

What is the relationship between discounting and compounding?

What is the relationship between the present-value factor and the annuity present-value factor?

What will $5,000 invested for 10 years at 8 percent compounded annually grow to? How many years will it take $400 to grow to $1,671 if it is invested at 10 percent compounded annually? At what rate would $1,000 have to be invested to grow to $4,046 in 10 years?

Calculate the future sum of $1,000, given that it will be held in the bank for 5 years and earn 10 percent compounded semiannually.

What is an annuity due? How does this differ from an ordinary annuity?

What is the present value of an ordinary annuity of $1,000 per year for 7 years discounted back to the present at 10 percent? What would be the present value if it were an annuity due?

What is the future value of an ordinary annuity of $1,000 per year for 7 years compounded at 10%? What would be the future value if it were an annuity due?

You have just borrowed $100,000, and you agree to pay it back over the next 25 years in 25 equal end-of-year payments plus 10 percent compound interest on the unpaid balance. What will be the size of these payments?

What is the present value of a $1,000 perpetuity discounted back to the present at 8 percent?

What is the present value of a $1,000 annuity for 10 years, with the first payment occurring at the end of year 10 (that is, ten $1,000 payments occurring at the end of year 10 through 19), given a discount rate of 10 percent?

Given a 10 percent discount rate, what is the present value of an perpetuity of $1,000 per year if the first payment does not begin until the end of year 10?

What is the relationship between discounting and compounding?

What is the relationship between the present-value factor and the annuity present-value factor?

What will $5,000 invested for 10 years at 8 percent compounded annually grow to? How many years will it take $400 to grow to $1,671 if it is invested at 10 percent compounded annually? At what rate would $1,000 have to be invested to grow to $4,046 in 10 years?

Calculate the future sum of $1,000, given that it will be held in the bank for 5 years and earn 10 percent compounded semiannually.

What is an annuity due? How does this differ from an ordinary annuity?

What is the present value of an ordinary annuity of $1,000 per year for 7 years discounted back to the present at 10 percent? What would be the present value if it were an annuity due?

What is the future value of an ordinary annuity of $1,000 per year for 7 years compounded at 10%? What would be the future value if it were an annuity due?

You have just borrowed $100,000, and you agree to pay it back over the next 25 years in 25 equal end-of-year payments plus 10 percent compound interest on the unpaid balance. What will be the size of these payments?

What is the present value of a $1,000 perpetuity discounted back to the present at 8 percent?

What is the present value of a $1,000 annuity for 10 years, with the first payment occurring at the end of year 10 (that is, ten $1,000 payments occurring at the end of year 10 through 19), given a discount rate of 10 percent?

Given a 10 percent discount rate, what is the present value of an perpetuity of $1,000 per year if the first payment does not begin until the end of year 10?

Can you please indicate the correct answers from my quiz. If you give the answers I can figure out what I did wrong.

Which one of the following statements is correct?
Select one:
a. The present value of an annuity increases when the interest rate decreases.
b. The future value of an annuity is unaffected by the amount of each annuity
payment.
c. The future value of an annuity increases when the interest rate decreases.
d. The present value of an annuity is unaffected by the number of the annuity
payments.
e. The present value of an annuity increases when the interest rate increases

Augusta Acres is planning a major expansion for 3 years from today. In preparation
for this, the company is setting aside $30,000 each quarter, starting today, for the
next 3 years. How much money will the firm have when it is ready to expand if it
can earn an average of 7.5 percent on its savings?
Select one:
a. $594,165
b. $486,152
c. $407,038
d. $552,712
e. $399,546

financed this purchase at 8.25 percent interest with monthly payments of
$2,379.45. How many years will it take the firm to pay off this debt?
Select one:
a. 5.0 years
b. 3.5 years
c. 4.5 years
d. 3.0 years
e. 4.0

You are comparing two investments, both of which provide annuity payments in
exchange for a lump sum investment today. Each annuity is for a period of 25
years and each pays $500 a month. You require a 7 percent return on these
investments. Annuity A pays at the beginning of each month and annuity B pays at
the end of each month. Given this information, which one of the following
statements is correct?
Select one:
a. Annuity B is worth more today because of the timing of its cash flows.
b. Both annuities are equally valuable today.
c. Annuity A has a higher present value and a lower future value than annuity
B.
d. Annuity A has both a higher present value and a higher future value than
annuity B.
e. Annuity A is worth more today because you will receive 25 payments
whereas Annuity B only pays 24 payments.

The Corner Bank pays 4 percent interest, compounded monthly, on its savings
accounts. The Uptown Bank pays 4 percent interest, compounded quarterly, on its
savings accounts. You want to deposit sufficient funds today so that you will have
$2,400 in your account 3 years from today. The amount you must deposit today:
Select one:
a. will be greater if you invest with The Corner Bank.
b. is the same regardless of which bank you choose because they both pay 4
percent interest.
c. is the same regardless of which bank you choose because they both pay
compound interest.
d. will be greater if you invest with The Uptown Bank.
e. is the same regardless of which bank you choose because they both pay
simple interest.

The Mailbox Co. invested $50,000 at 7.5 percent compounded annually for 2
years. How much interest on interest did the company earn over this period of
time?
Select one:
a. $3,750.00
b. $4,614.83
c. $281.25
d. $7,781.25
e. $7,500.00

Related Documents

FIN 3715 Chapter : Chapter 5 Fin Test Bank
azuremammoth471
FIN 300 Chapter Notes - Chapter 6: Cash Flow, Photovoltaic System, Compound Interest
greenskunk609
FIN 300 Lecture 2: Chapter 6 – Discounted Cash Flow Valuation.docx
apricotguinea-pig282

Weekly leaderboard

Home
Homework Help 3,900,000
Finance 370,000
Start filling in the gaps now
Log in