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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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