Question
Answer the questions shown below. Some of this material may overlap other assignments you are working on and some of it can be used to
Answer the questions shown below. Some of this material may overlap other assignments you are working on and some of it can be used to develop your final Business Plan. SHOW YOUR WORK FOR PARTIAL CREDIT.
Generally Future and Present Values can be determined using a chart, spreadsheet, software or a financial calculator. Calculator.net is a good place to start.
Q #1. Fill in the following table, using the future value chart in this chapter to show the amounts of one invested dollars growth at the interest rates and time periods given.
PERIODS 2 | INTEREST RATE 5% | FUTURE VALUE OF $10 ____________
|
5 | 8% | ____________ |
10 | 10% | ____________ |
1 | 1% | ____________ |
7 | 3% | ____________ |
Q #2. Fill in the following table, using a Present Value chart, to show the amounts of the net present value of $100 at the interest rates and time periods given.
PERIODS | INTEREST RATE (%) | PRESENT VALUE OF $100 |
2 | 5 | __________ |
5 | 8 | __________ |
10 | 10 | __________ |
1 | 1 | __________ |
7 | 3 | __________ |
Q #3. Calculate the annual amount of interest (assuming no principal repayment) for each of the following:
- Term loan of $122,000 over 15 years at 6.5 percent. ___________________
- Line of credit for $50,000 drawn 50% all year at 10 percent. ___________________
- 15 shares of stock purchased at $12.50 per share ___________________
- Bonds trading at par for $2,000 with a 7 percent rate. ___________________
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