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FUTURE VALUE OF A SINGLE AMOUNT: A B C D E F Present Value 200 4,500 10,000 25,000 37,000 40,000 Interest Rate Per Year 5%
FUTURE VALUE OF A SINGLE AMOUNT: | |||||||
A | B | C | D | E | F | ||
Present Value | 200 | 4,500 | 10,000 | 25,000 | 37,000 | 40,000 | |
Interest Rate Per Year | 5% | 8% | 9% | 10% | 11% | 12% | |
Number of Years | 20 | 7 | 10 | 12 | 5 | 9 | |
Future Value | |||||||
PRESENT VALUE OF A SINGLE AMOUNT: | |||||||
A | B | C | D | E | |||
Future Value | 7,000 | 28,000 | 10,000 | 150,000 | 45,000 | ||
Interest Rate Per Year | 12% | 8% | 14% | 11% | 20% | ||
Number of Years | 4 | 20 | 12 | 6 | 8 | ||
Present Value | |||||||
1. Annuity | |||||||
PRESENT VALUE OF AN ANNUITY | |||||||
A | B | C | D | E | |||
Annuity Amount | 12,000 | 55,000 | 700 | 140,000 | 22,500 | ||
Interest Rate Per Year | 7% | 12% | 20% | 5% | 10% | ||
Number of Years | 3 | 15 | 9 | 7 | 5 | ||
Present Value | |||||||
PRESENT VALUE OF AN ANNUITY DUE | |||||||
2. Annuity due | |||||||
PRESENT VALUE OF AN ANNUITY DUE | |||||||
A | B | C | D | E | |||
Annuity Amount | 12,000 | 55,000 | 700 | 140,000 | 22,500 | ||
Interest Rate Per Year | 7% | 12% | 20% | 5% | 10% | ||
Number of Years | 3 | 15 | 9 | 7 | 5 | ||
Present Value | |||||||
a | b | ||||||
Annual payment | 2,000 | 2,000 | |||||
Interest Rate Per Year | 10% | 10% | |||||
Number of Years | 40 | 30 | |||||
Future value | |||||||
a | b | ||||||
Annual payment | 2,000 | 2,000 | |||||
Interest Rate Per Year | 10% | 10% | |||||
Number of Years | 40 | 30 | |||||
Future value | |||||||
Part a: Future value of a single amount compounded: | |||||||
A | B | C | D | ||||
Present Value | 2,500 | 50,000 | 1,000 | 20,000 | |||
Interest Rate | 6% | 12% | 5% | 16% | |||
Number of years | 5 | 3 | 10 | 6 | |||
Compounding Frequency | 2 | 6 | 1 | 4 | |||
Future value | |||||||
Part b: Effective Annual Rate | |||||||
A | B | C | D | ||||
Present Value | 2,500 | 50,000 | 1,000 | 20,000 | |||
Interest Rate | 6% | 12% | 5% | 16% | |||
Number of years | 5 | 3 | 10 | 6 | |||
Compounding Frequency | 2 | 6 | 1 | 4 | |||
Effective Annual Rate = | |||||||
Single | Single | Life of | Approximate | ||||
Investment | Investment | Return | Investment | Interest Rate | |||
A | 5,000 | 8,400 | 6 | ||||
B | 5,000 | 15,900 | 15 | ||||
C | 5,000 | 7,600 | 4 | ||||
D | 5,000 | 13,000 | 10 |
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