Calculate the future value in five years of $5,000 received today if your investments pay.6 percent compounded annually8 percent compounded annually10 percent compounded annually10 percent compounded semiannually10 percent compounded quarterlyWhat do your answers to these questions tell you about the relation between future values and interest rates and between future values and the number of compounding periods per year?

Future value =Present value *(1+rateper period)^n Where, n = no. of compounding period

Answered: Calculate the future value in five…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 18E

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Calculate the future value in five years of $5,000 received today if your investments pay.
6 percent compounded annually
8 percent compounded annually
10 percent compounded annually
10 percent compounded semiannually
10 percent compounded quarterly

What do your answers to these questions tell you about the relation between future values and interest rates and between future values and the number of compounding periods per year?

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