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- Calculate the
future value (FV) in 6 years time of £600 invested at 12% nominal annual interest, if the interest rate is compounded quarterly:
Step by step
Solved in 3 steps
- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityDefine the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?Use the present value formula to find the present value of P30,000, if the interest rate is 16% compounded quarterly, for 6 years.
- Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated interest rate after the stated amount of time.0.5% per month, compounded monthly, after 21 yearsFind the future value if $2700 is invested for 7 years at an annual rate of 9% compounded quarterly.If the current rate of interest is 6% APR, what is the future value of an investment that pays AED 15,000 every two years and lasts 20 years.
- Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated interest rate after the stated amount of time. 12.9% per year, compounded monthly, after 6 years FV = $1. If you invest $ 2,000 now and it will become $ 6,000 at the end of 4 years, determine the nominal rate of interest and the corresponding effective rate of interest if the interest is compounded quarterly.How much is the present value of your investment if you invest P2,000 semi-annually at start of every six months for a period of 4 years with an interest rate of 21 percent per annum
- Calculate if $10,000 is invested at interest rate of 12% per annum, what is the amount after 3 years if the compounding of interest is done annually.What are the future value and the interest earned if $3400 is invested for 6 years at 8% compounded quarterly? (Round your answers to the nearest cent.) future value interest earnedIf 36,400 dollars is invested at an interest rate of 7 percent per year, find the value of the investment at the end of 5 years for the following compounding methods. (a) what is the Annual: (b) what is the Semiannual: (c) what is the Monthly: (d) what is the Daily:
