arwin has a capital of $ 7100.00 which he invests for 3 years at 7.6 % p. a. a)How much will he receive come maturity time if the interest is compounded annually? Round to nearest 100th. b)How much will he received come maturity time if the interest is compounded semi-annually? Round to nearest 100th . c)How much will he receive come maturity time if the interest is compounded quarterly? Round to nearest 100th .

arwin has a capital of $ 7100.00 which he invests for 3 years at 7.6 % p. a. a)How much will he receive come maturity time if the interest is compounded annually? Round to nearest 100th. b)How much will he received come maturity time if the interest is compounded semi-annually? Round to nearest 100th . c)How much will he receive come maturity time if the interest is compounded quarterly? Round to nearest 100th .

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 18PROB

See similar textbooks

Similar questions

Darwin has a capital of $ 7100 which he invests for 3 years at 7.6 % p. a. a)How much will he receive come maturity time if the interest is compounded annually? Round to the nearest 100th. b)How much will he received come maturity time if the interest is compounded semi-annually? Round to the nearest 100th . c)How much will he receive come maturity time if the interest is compounded quarterly? Round to the nearest 100th . Then, George Green wishes to invest $ 8000 that he saved from his summer job. His bank offers 3.75 % for a one-year term investment or 3.5 % for a six-months term. a)How much will George receive (capital plus interest) after one year if he invests at the one-year rate? Round to the nearest one. b)How much will he receive (capital plus interest) after one-year if he invests for six months at a time at 3.5 % each time? This means George took the interest from the first investment transaction and included it in the principal for the second transaction. Round to…
Ahmed has S2,500 invested at a guaranteed rate of 4.50 percent, compounded annually. What will his investment be worth after fíve years?
Chuck Brown will receive from his investment cash flows of $3,125, $3,460, and $3,840 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at the end of three years? (Round to two decimal places.)
John invests $ 350 on the last day of each month into an account for 4 years compounding monthly at an interest rate of 7.5%, and then allows that investment to earn interest for the next 3 years. What is the value of his investment at the end of the seventh year?
Your father paid $10,000 (cf occurs at t=0) for an investment that promises to pay $850 at the end of each of the next 5 years, then an additional lump sum payment of $12,000 at the end of the 5th year. What is the expected rate of return on this investment?
e) Fizal plan to invest RM2,000 in one of the Malaysian unit trusts each year for the next 18 years. He wants to know the effect of investing this money at the beginning of each year, rather than waiting until the end of each year. Calculate the difference in the future value of his investment in the next 15 years:i) if annual investment is at the end of each period;ii) if annual investment is at the beginning of each periodFor both cases, assume a 12 percent interest rate is applied.
Alexander invests $5,000 at an interest rate of 1.4% per quarter. How much is the investment worth after 3 years?
Bill Padley expects to invest $10,000 for 25 years, after which he wants to receive $108,347. What rate of interest must Padley earn?
Four years ago, XZY deposited $2,920 in an account that has earned and will earn 8.70 percent per year in compound interest. If ABC deposits $3,540 in an account in 1 year from today that earns simple interest, then how much simple interest per year must ABC earn to have the same amount of money in 10 years from today as XZY will have in 10 years from today? Answer as an annual rate. 20.30% (plus or minus .05 percentage points) 10.00% (plus or minus .05 percentage points) 9.00% (plus or minus .05 percentage points) 18.36% (plus or minus .05 percentage points) None of the above is within .05 percentage points of the correct answer.