Suppose $1000 is invested at the end of each year. Assume the investments earn 10% compounded annually. Calculate the future value of the investments after each of the following number of years. a. 10 b. 20 c. 30

Q: Investment If $5000 is invested for 6 years atinterest rate r (as a decimal), compounded annually,…

A: future value formula: Future value=present value×1+rateyears

Q: Determine  the present value of a 50,000, receivable to be collected after three years at an…

A: We need to compute the present value of the given amounts.

Q: Suppose that P dollars in principal is invested in an account earning 2.1% interest compounded…

A: A=P+193.03 r- 0.021 t=2 years Since A=Pert Therefore, P+193.03= Pe 0.21*2 P+193.03/P= e0.042…

Q: Find the time required for an investment of 5000 dollars to grow to 6700 dollars at an interest rate…

A: we have convert annual rate to quarter period interest and period into quarterly period also.

Q: Suppose that you invest $9,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to…

A: Compound interest is the total interest earned during the investment period. It considers…

Q: Compare the investment below to an investment of the same principle at the same rate compounded…

A: In this question future value of the same investment is to be find out. One future value will be…

Q: Determine the difference in annual worth between an investment of $100,000 per year for 50 years and…

A: Computation of annual worth (AW) if the interest rate is 5%:

Q: Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the…

A: The Future Value of the investments is anticipation after looking at the market conditions and…

Q: A MAN INVESTED 1/3 OF THE SUM AT 7% , 1/4 AT 8% AND THE REMAINING AT 10% FOR ONE YEAR. IF THE ANNUAL…

A: Let the investment amount be A

Q: how much would be available at the end of the time period. How much is the interest earned?

A: Time value of money (TVM) means that the money received in the present period will have more value…

Q: Assume the annual interest rate is 6%. Calculate the value of an investment that pays $100 every two…

A: Present value of perpetuity is = cash flow/rate

Q: An investment has doubled in 8 years. What is the annually compounded rate of return? Select one:…

A: Period = 8  Years

Q: a) How much will this investment be worth after 10 years? (Round your answer to the nearest cent.) $…

A: Investment Amount = $49,000 Time period = 10 years Rate of interest = 8% compounded continuously.…

Q: earns an annual interest rate of 12 percent compounded Semi annually. What is the effective annual…

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: Suppose that annual income from a rental property is expected to start at P65,000 per year and…

A: For Solving This Question 1. we have to calculate the present value of cash inflow 2. Cash inflow…

Q: A set of cash flows begins at $20,000 the first year, with an increase each year until n = 10 years.…

A: Information provided: Initial cashflow = $20,000 n = 10 years interest rate = 8%   Present value =…

Q: An investment earns an annual interest rate of 12 percent compounded quarterly. What is the…

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: Given below are the future value factors for 1 at 10% for one to five periods. Interest is…

A: It is method of computing interest where interest is calculated over interest as well.

Q: Find the annual worth in years 1 through 10 of an investment that starts at $8000 in year 1 and…

A: PV of single growing cashflow = (C(1+g)n)/(1+r)n Where C = cashflows = $8000 r = interest rate = 10%…

Q: The income stream b = (1000, 1500, 2500, 4000) consists of payments made at the end of the next four…

A: The present value is calculated by discounting the cash flows at an appropriate discount rate for a…

Q: A set of cash flows begins at $80,000 the first year, with an increase each year until n = 10 years.…

A: Present Value(PV) is current value of any amount that is to be paid or received in future. It is…

Q: Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Suppose that P dollars in principal is invested for t years at the given interest rates with…

A: In case of continuous compounding the assumption is that interest is constantly accruing. Here the…

Q: is the present value of $10000 to be received 20 years from now, if the principal is invested at 8%…

A: Given, Amount to be received, A = $10,000 No. of years, n = 20 Interest rate , i = 8% or 0.08

Q: Of the following five investments, which would have the lowest present value? Assume that the…

A: Assumption: Interest rate assumed is 10%.

Q: Suppose an income stream will produce income at a rate of 4000 + 1000t dollars per year for 5 years,…

A: Present value Present value of an amount with continuous compounding. With continuous compounding…

Q: investment

A: Formula to calculate compound interest is: A = P(1+r/n)^nt where A is the final amount, P is the…

Q: Consider the following investment. (Round your answers to the nearest cent.) $5,600 at  6 3/4%…

A: Time value of money concept says that if we invest a particular sum of money today will not have…

Q: If an amount of $10,000 is deposited into a savings account at an annual interest rate of 4%,…

A: Here in this question we are required to calculate the compounded interest of investment after 8…

Q: What is the present value of an investment at 6% annual simple interest if it is worth $832 in 8…

A: Future value (S) = $832 Time (t) =  8 months (8/12) Rate (r) = 6% (0.06) Simple interest (I) = Prt

Q: Suppose that you invest $5,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to…

A:

Q: Each and every year $7,500 is invested at 4% annual compound interest.a. What is the value of the…

A: Part a) Value of investments at different time periods  : Results obtained :

Q: A sum of OMR 25600 is invested at an interest rate of 6.25% per year. If the interest is compounded…

A: The time period or the number of years (NPER) refers to the time it would require for the investment…

Q: Find the present worth of an investment that starts at $8000 in year 1 and increases by 10% each…

A: Time value It tells that value received today has more value than that of receiving the same value…

Q: Consider an investment where $45,000 is invested for 15 years at 8% compounded continuously.   How…

A: Continues compounding is a limit that a compound interest can reach. It can be calculated through…

Q: future value of an investment made 5 years ago is P150,000. If the investment offered an annual…

A: Effective rate goes on increasing if the compounding goes on increasing. And effective rate is less…

Q: 8. Determine the future value at the end of two years of an investment of OMR3,000 made now and an…

A: Future value refers to the future worth of a money that has been invested now. Future value of money…

Q: What is the present value of end-of-year cash flows of $9,000 per year, with the first cash flow…

A: Cash flow: It denotes to the sum of cash that keeps flowing in the business and out of business…

Q: 8. Determine the future value at the end of two years of an investment of OMR3,000 made now and an…

A: The future value of an investment is the accumulation of an initial amount at a certain rate of…

Q: What is the present value of a stream of $800 cash payments, each to be made at the beginning of the…

A: Present Value represents the present worth of the investment. This can be computed by using Excel…

Q: An investment pays $200 at the end of Year I. $250 at the beginning* of Year 2. $387 at the end of…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: Calculate, to the nearest cent, the present value of an investment that will be worth $1,000 at the…

A: In finance, the term future value shows a dollar sum expected to be received at some point in the…

Q: Calculate the future value of the following single amounts.   Initial Investment Annual Rate…

A: Future value: It can be defined as the value of an investment or any asset at a specified future…

Q: A sum of $5000 is invested at an interest rate of 9% per year, compounded continuously.(a) Find the…

A: Compounding is a technique through which FV of present amount is computed by using appropriate rate.

Q: rate of interest, compounded annually, will result in the receipt of $15938.48 if $10000 is invested…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: An investment becomes P 4,500,000 four years from now and becomes P 5,250,000 thirteen years from…

A: Let the initial investment = X Future value (F) after 4 years = P 4500000 Future value (F) after 13…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.