Question
1. Refer to the following table. For each case (A through D), calculate the ANNUAL interest necessary for the present amount (PV) to compound to
1. Refer to the following table. For each case (A through D), calculate the ANNUAL interest necessary for the present amount (PV) to compound to the future amount (FV). Be SURE to state your answer in ANNUAL terms.
| Case | Present Amount | Future Amount | Years | Compounding |
| A | $18,000 | $30,000 | 5 | ANNUAL |
| B | $600 | $3,000 | 20 | SEMIANNUAL |
| C | $3,500 | $10,000 | 10 | QUARTERLY |
| D | $1,000 | $15,000 | 40 | MONTHLY |
2. Refer to the following table. For each case (A through D), calculate the NUMBER OF YEARS necessary for the present amount (PV) to compound to the future amount (FV) with the given interest rate and compounding. Be SURE to state your answer as YEARS.
| Case | Present Amount | Future Amount | Years | Compounding |
| A | $15,000 | $30,000 | 5 | ANNUAL |
| B | $6,000 | $13,000 | 12 | SEMIANNUAL |
| C | $3,500 | $10,000 | 10 | QUARTERLY |
| D | $1,000 | $15,000 | 12 | MONTHLY |
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Financial Management Core Concepts
Authors: Raymond Brooks
3rd Edition
0133866742, 9780133866742
