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FV-PV EXERCISES ALT-FUTURE-VALUE-LUMP-SUM Hood Company invested $10,000 in an account that earns 6.00% per year. How much will the investment grow to in 5 years?
FV-PV EXERCISES | |||||||||||||||||
ALT-FUTURE-VALUE-LUMP-SUM | |||||||||||||||||
Hood Company invested $10,000 in an account that earns 6.00% per year. | |||||||||||||||||
How much will the investment grow to in 5 years? | |||||||||||||||||
Answer | |||||||||||||||||
0 | 1 | 2 | 3 | 4 | 5 | ||||||||||||
Investment in time period 0: | 10000 | ? | |||||||||||||||
Put answer in box to the right | |||||||||||||||||
ALT-PV-LUMP-SUM | |||||||||||||||||
Shasta Inc. is looking at an investment that will pay Shasta Inc. $4,000 in 3 years. | |||||||||||||||||
How much should the company pay for this investment today, | |||||||||||||||||
in order to earn a rate of return of 5.00%? | Answer | ||||||||||||||||
0 | 1 | 2 | 3 | 4 | 5 | ||||||||||||
Investment in time period 0: | ? | $4.000 | |||||||||||||||
Put answer in box to the right | |||||||||||||||||
ALT-PV-ANNUITY | |||||||||||||||||
Shasta Inc. is looking at an investment that will pay Shasta Inc. $5,000 each year for 5 years. | |||||||||||||||||
How much should the company pay for this annuity today, | |||||||||||||||||
in order to earn a rate of return of 8.00%? | Answer | ||||||||||||||||
0 | 1 | 2 | 3 | 4 | 5 | ||||||||||||
Investment in time period 0: | ? | $5.000 | $5.000 | $5.000 | $5.000 | $5.000 | |||||||||||
Put answer in box to the right | |||||||||||||||||
ALT-PV-CASH STREAM | Answer | ||||||||||||||||
Baker Brothers is looking at an investment that will pay Baker Brothers $4,000 in year 1, $5,000 in year 2, | |||||||||||||||||
and $7,500 in year 3. How much should the company pay for this cash stream today, | |||||||||||||||||
in order to earn a rate of return of 10.00%? | |||||||||||||||||
0 | 1 | 2 | 3 | ||||||||||||||
Investment in time period 0: | ? | $4.000 | $5.000 | $7.500 | |||||||||||||
Put answer in box to the right | |||||||||||||||||
PV OF $1.00 | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 11% | 12% | 13% | 14% | 15% | ||
1 | 0,9901 | 0,9804 | 0,9709 | 0,9615 | 0,9524 | 0,9434 | 0,9346 | 0,9259 | 0,9174 | 0,9091 | 0,9009 | 0,8929 | 0,8850 | 0,8772 | 0,8696 | ||
2 | 0,9803 | 0,9612 | 0,9426 | 0,9246 | 0,9070 | 0,8900 | 0,8734 | 0,8573 | 0,8417 | 0,8264 | 0,8116 | 0,7972 | 0,7831 | 0,7695 | 0,7561 | ||
3 | 0,9706 | 0,9423 | 0,9151 | 0,8890 | 0,8638 | 0,8396 | 0,8163 | 0,7938 | 0,7722 | 0,7513 | 0,7312 | 0,7118 | 0,6931 | 0,6750 | 0,6575 | ||
4 | 0,9610 | 0,9238 | 0,8885 | 0,8548 | 0,8227 | 0,7921 | 0,7629 | 0,7350 | 0,7084 | 0,6830 | 0,6587 | 0,6355 | 0,6133 | 0,5921 | 0,5718 | ||
5 | 0,9515 | 0,9057 | 0,8626 | 0,8219 | 0,7835 | 0,7473 | 0,7130 | 0,6806 | 0,6499 | 0,6209 | 0,5935 | 0,5674 | 0,5428 | 0,5194 | 0,4972 | ||
PV OF AN ANNUITY OF $1.00 | 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 11% | 12% | 13% | 14% | 15% | ||
1 | 0,9901 | 0,9804 | 0,9709 | 0,9615 | 0,9524 | 0,9434 | 0,9346 | 0,9259 | 0,9174 | 0,9091 | 0,9009 | 0,8929 | 0,8850 | 0,8772 | 0,8696 | ||
2 | 1,9704 | 1,9416 | 1,9135 | 1,8861 | 1,8594 | 1,8334 | 1,8080 | 1,7833 | 1,7591 | 1,7355 | 1,7125 | 1,6901 | 1,6681 | 1,6467 | 1,6257 | ||
3 | 2,9410 | 2,8839 | 2,8286 | 2,7751 | 2,7232 | 2,6730 | 2,6243 | 2,5771 | 2,5313 | 2,4869 | 2,4437 | 2,4018 | 2,3612 | 2,3216 | 2,2832 | ||
4 | 3,9020 | 3,8077 | 3,7171 | 3,6299 | 3,5460 | 3,4651 | 3,3872 | 3,3121 | 3,2397 | 3,1699 | 3,1024 | 3,0373 | 2,9745 | 2,9137 | 2,8550 | ||
5 | 4,8534 | 4,7135 | 4,5797 | 4,4518 | 4,3295 | 4,2124 | 4,1002 | 3,9927 | 3,8897 | 3,7908 | 3,6959 | 3,6048 | 3,5172 | 3,4331 | 3,3522 |
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