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. What is the future value in SEVEN years if you receive $300 in two years and $500 at the end of five years?
. What is the future value in SEVEN years if you receive $300 in two years and $500 at the end of five years? Assume an annual compound rate of 8.5%. . What is the value of $2000 after one year if bank compounding half yearly and offered rate is 10%. (note: compare your answer with the answer of question no.1, give comments) What is the value of $2000 after one year if bank compounding quarterly and offered rate is 10%. (note: compare your answer with the answer of question no.1 and 7, give comments) . What is the value of $2000 after one year if bank compounding monthly and offered rate is 10%. (note: compare your answer with the answer of question no.1,7 and 8 give comments) 0. What is the present value of $2,000 to be received 2 years from today when the annual discount rate is 10%? 1. What is the present value of $500 to be received 10.5 years from today when the annual discount rate is 8%? 2. What is the present value of $700 to be received in two equal installments ($350 each), two years and five years from today, when the annual discount rate is 10%? 3. Suppose Capitol Federal Bancorp offers a certificate of deposit that pays $10,000 in five years for exchange for $8,000 today. What interest rate is Capitol Federal Bancorp offering? 4. Suppose Bank One offers a certificate of deposit that pays $5,000 in four years for exchange for $4,000 today. What interest rate is Bank One offering? 5. How many years will take $10,000 to grow to $20,000 if bank offered rate is 10%. 6. How many years will take $25,000 to grow to $120,000 if bank offered rate is 18%. e value of Money Page 1
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