Find the present value and the future value of $2000 for 5 years with interest rate of 8% compounded quarterly. Using the formula: P= R [1-(1+i)^-n/i] F= R [(1+i)^n-1/i]
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Q: present
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A: Given:
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A: Present Value = Cash Flows * [ ( 1 - e-rt ) / ( er - 1 ) ] Future Value = Cash Flows * [ ( ert - 1 )…
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A: Formula: Present value Annuity factor = [ 1 - 1 / ( 1 + i )N ] / i
Q: present value = 120,000, period 7 years, future value is 360,000 find the interest rate
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A: The present value is the value of the sum received at time 0 or the current period. It is the value…
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A: Using Future value in excel.
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A: The formula used for calculating G is:
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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
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Q: What is the Present Value of $500 received in eight years with an interest rate of 8 percent?
A: Given information: Cash flow or Future value is $500, Interest rate is 8%, Number of years is 8
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A: Future value is what money invested today will become over a time at a rate of interest
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A: Introduction Present Value: Represents the value/ identifies today's worth for the value…
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A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
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A: SOLUTION : GIVEN, Annual payment = $5,000 Interest rate = 10% = 0.10 Number of years = 2 years…
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- If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%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?
- *Using Matlab* The current amount A of a principal P invested in a savings account paying an annual interest rate r is given by A = P(1+r/n)^(nt) where n is the number of times per year the interest is compounded. For continuous compounding, A = Pe^(rt). Suppose $10,000 is initially invested at 2.5 percent (r = 0.025). a. Plot A versus t for 0 ≤ t ≤ 20 years for four cases: continuous compounding, annual compounding (n = 1), quarterly compounding (n = 4), and monthly compounding (n = 12). Show all four cases on the same subplot and label each curve. On a second subplot, plot the difference between the amount obtained from continuous compounding and the other three cases. b. Redo part a, but plot A versus t on log-log and semilog plots. Which plot gives a straight line?The present value that will give future value s in 4 years with interest compounded annually varies inversely as the forth power of 1 + r,where r is the annual interest rate.if the present value of $1525.79 gives a future value of $2000,what would be the present value of $10,000 in the future?Compute the following with the data provided: (Show sufficient work with formulas used and all the steps involved ) A=$12, 500.00 per Quarter r=7.5% N=12 years Present Worth if the interest is compounded monthly? Future Value if the interest is compounded Quarterly: Present Worth if the interest is compounded continuously?
- Use the present value formula to find the present value of P30,000, if the interest rate is 16% compounded quarterly, for 6 years.PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULASProblem 1 Find the final value (FV or FV) at compound interest of $10,000, for 10 years:(a) at 7.5% effective annual rate. (rates are annual)b) At 7.5% compounded monthly.c) At 7.5% capitalized quarterly.d) At 7.5% compounded semiannually.set up an equation and solve each problem. Suppose that $500 is invested at a certain rate of interest compounded annually for 2 years. If the accumulated value at the end of 2 years is $594.05, find the rate of interest.
- If the $150,000 had been compounded continuously for 10 years at interest rate r, the balance would be 150,000er#10. The question is at what value of r will the balance be $400,000?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. 3% per year, compounded quarterly (4 times/year), after 7 yearsComplete the following using compound future value. Time 2 years, Principal $15,000, Rate 8%, Compounded quarterly. What is the amount? What is the interest?
