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Please solve the following questions about Time Value of Money: 1. To what amount will the following investment accumulate ? a. 5,000 invested for 10
Please solve the following questions about Time Value of Money:
1. To what amount will the following investment accumulate ? a. 5,000 invested for 10 years at 10% compounded annually b. 5,000 invested for 10 years at 10% compounded semi-annually C. 5,000 invested for 10 years at 10% compounded quarterly d. 5,000 invested for 10 years at 10% compounded monthly 2. At what rate must your 11,167 be compounded annually for it to grow to 20,000 ? 3. What is the present value of 500 to be received in 10 years from today if our discount rate is 6% ? 4. What is the present value of a 10-year 1,000 annuity discounted back to the present at 5%? 5. If to provide a college education we are going to deposit 500 at beginning of each year for the next five years in a bank where it will earn 6% interest, how much will we have at the end of five years? 6. If to provide a college education we are going to deposit 500 at end of each year for the next five years in a bank where it will earn 6% interest, how much will we have at the end of five years? a 1. To what amount will the following investment accumulate ? a. 5,000 invested for 10 years at 10% compounded annually b. 5,000 invested for 10 years at 10% compounded semi-annually C. 5,000 invested for 10 years at 10% compounded quarterly d. 5,000 invested for 10 years at 10% compounded monthly 2. At what rate must your 11,167 be compounded annually for it to grow to 20,000 ? 3. What is the present value of 500 to be received in 10 years from today if our discount rate is 6% ? 4. What is the present value of a 10-year 1,000 annuity discounted back to the present at 5%? 5. If to provide a college education we are going to deposit 500 at beginning of each year for the next five years in a bank where it will earn 6% interest, how much will we have at the end of five years? 6. If to provide a college education we are going to deposit 500 at end of each year for the next five years in a bank where it will earn 6% interest, how much will we have at the end of five years? a
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