Question
I want to confirm if my answers are right: 11. What is the future value of a principal of $2,000 with a 12% interest rate
I want to confirm if my answers are right:
11. What is the future value of a principal of $2,000 with a 12% interest rate compounding semiannual, and 2 years to maturity?
2,530.64
12. What is the future value of a principal of $10,000 with a 12% interest rate compounding quarterly, and 1 year to maturity?
11,255
13. If the interest rate is 5%, what is the net present value of a security that pays you $10,000 in 10 years, and $10,000 in 15 years?
Not compounded: 7,500
Compounded: 10,949.98
14. If the interest rate is 6%, what is the net present value of a security that pays you $350 next year, $385 the year after, and $436 the year after that?
1,039.17
11. What is the future value of a principal of $2,000 with a 12% interest rate compounding semiannual, and 2 years to maturity? 12. What is the future value of a principal of $10,000 with a 12% interest rate compounding quarterly, and 1 year to maturity? 13. If the interest rate is 5%, what is the net present value of a security that pays you $10,000 in 10 years, and $10,000 in 15 years? 14. If the interest rate is 6%, what is the net present value of a security that pays you $350 next year, $385 the year after, and $436 the year after thatStep by Step Solution
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