Question
a. Find the FV of $1,000 invested to earn 8% after 6 years. Round your answer to the nearest cent. (1586.87) c. Find the PV
a. Find the FV of $1,000 invested to earn 8% after 6 years. Round your answer to the nearest cent. (1586.87)
c. Find the PV of $1,000 due in 6 years if the discount rate is 8%. Round your answer to the nearest cent. (630.17)
h. What will the FV and the PV for parts a and c be if the interest rate is 8% with semiannual compounding rather than 8% with annual compounding? Round your answers to the nearest cent.
FV with semiannual compounding: $ PV with semiannual compounding: $
i. Find the annual payments for an ordinary annuity and an annuity due for 12 years with a PV of $1,000 and an interest rate of 6%. Round your answers to the nearest cent.
Annual payment for ordinary annuity: | |
Annual payment for annuity due: |
j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 6%.
Year | Payment |
1 | $200 |
2 | $300 |
3 | $600 |
Round your answers to the nearest cent.
PV of investment: FV of investment:
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