answer if its true or false 1) Based on the following information calculate the value at time 2 of the investment made at time zero. This future value is equal to 113. time discount investment (years) rate 6% 100
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Q: answer if its true or false Based on the following information calculate the value at time 2 of the…
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- Compute the present value if future value (FV) = $4892, interest rate (r) = 14.0%, and number of years (t) = 16.For each of the following, compute the future value: Present value years interest rate future value $2,650 6 20% $9,453 19 8% $99,305 13 13% $237,382 29 3%A customer is offered an investment where interest is calculated according to the force of interest,t {0.02t 0 ≤ t ≤ 3, 0.045 t > 3If the customer invest GH¢1000 now, what rate of interest, compounded quarterly is earned over the first 4 year period.
- For each of the following cases, indicate (a) to what interest rate columns and (b) to what number of periods you would refer in looking up the future value factor. (Round percentages to 2 decimal places, e.g. 5,275.)(1) In Table 1 (future value of 1): Annual Rate Number ofYears Invested Compounded Case A 4% 3 Annually Case B 9% 5 Semiannually (a) (b) Case A % periods Case B % periods (2) In Table 2 (future value of an annuity of 1): Annual Rate Number ofYears Invested Compounded Case A 6% 5 Annually Case B 12% 6 Semiannually (a) (b) Case A % periods Case B % periodsFor each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i= interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1, and PVAD of $1) (Use appropriate factor (s) from the tables provided. Round your final answers to nearest whole dollar amount.) Present Value Future Value I n ____________ $ 40,000 10% 5 $ 36,289 $ 65,000 _____ 10 $ 15,884 $ 40,000 8% ____ $ 46,651 $ 100,000 ______ 8 $ 15,376 ___________ 7% 20For the following exercise, use the compound interest formula, A(t) = P 1 + r n nt , where money is measured in dollars.After a certain number of years, the value of an investment account is represented by the expression 10,950 1 + 0.03 2 24 . How many years had the account been accumulating interest? yr
- Calculate Present Values For each of the following, compute the present value: Present Value Years Interest Rate Future Value 6 7% $13,827 11 15 43,852 19 11 725,380 29 18 590,710Use the compound interest formula A=P(1+rn)ntA=P(1+rn)nt or A=PertA=Pert to solve. Find the accumulated value of an investment of $1000 at 12% compounded quarterly for 3 years. $1092.73 $1360.00 $1404.93 $1425.76An investment is represented by the equation A(t)=10,250(1+ 0.04/12)120 How many years has the account been accumulating interest?
- Need answer ASAP... Single-payment compound amount factor is the conversion factor that, when multiplied by F, yields the present amount P of future amount F after n years at interest rate i. a. The above statement is factual b. The above statement is misleading c. The above statement is incomplete d. All of the aboveFor each of the following situations involving single amounts, solve for the unknown (?). Assume that interest is compounded annually. (i = interest rate, and n = number of years) Present Value Future Value i n1. ? $ 40,000 10% 52. $ 36,289 65,000 ? 103. 15,884 40,000 8 ?4. 46,651 100,000 ? 85. 15,376 ? 7 20What is the present value of payments that are: year 0: 5000, year1: 10000, year2: 12500, year3: 15000? Discount factor 11%.