Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Round interest rate, present value, payment amount and future value to 4 decimals. 1. To what amounts will the following investments accumulate? a. $5,000 invested

image text in transcribed
Round interest rate, present value, payment amount and future value to 4 decimals. 1. To what amounts will the following investments accumulate? a. $5,000 invested for 10 years at 10 percent compounded annually. Quarterly. b. $8,000 invested for 7 years at 8 percent compounded annually. Semi-annually. c. $775 invested for 12 years at 12 percent compounded annually. Monthly. d. $21,000 invested for 5 years at 5 percent compounded annually. Monthly. 2. How many periods will the following take? a. $500 to grow to $1,039.50 if invested at 5 percent compounded annually. Semi-annually: b. $35 to grow to $53.87 if invested at 9 percent compounded annually. Quarterly. c. $100 to grow to $298.60 if invested at 20 percent compounded annually. Monthly. d. $53 to grow to $78.76 if invested at 2 percent compounded annually. Monthly. 3. At what rate would the following have to be invested? a. $500 to grow to $1,948,00 in 12 years compounded annually. Semi-annually. b. $300 to grow to $422.10 in 7 years compounded anmually. Quarterly. c. $50 to grow to $280.20 in 20 years compounded annually. Quarterly. d. $200 to grow to $497.60 in 5 years compounded annually. Monthly. 4. What is the present value of the following future amounts? a. $800 to be received 10 years from now discounted back to the ptesent at 10 percent compounded quarterly. Compounded annually. b. $300 to be recerved 5 years from now discounted back to the present at 5 pereent compounded quarterly. Compounded semi-annually. c. $1,000 to be recerved 8 years from now discounted back to the present at 3 percent compounded quarterly. Compounded semi-annually. d $1,000 to be received 10 years from now discounted back to the present at 20 percent compounded quarterly. Compounded monthly. 5. Abert Smith made an intual $5,000 deposit in his account If he deposit $50 at the end of every month (59 deposits) for 5 years at 3% what will he be available to withdraw at the end of the 5 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing The Audit Function A Corporate Audit Department Procedures Guide

Authors: Michael P. Cangemi

2nd Edition

0471012556, 978-0471012559

More Books

Students also viewed these Finance questions