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What is the interest rate “r” if PV=$100 and the FV=$350 in year t=12?
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- 1) What is the future value at time t=3 for a present value of PV=$100 (e.g., t=0) if the interest rate is r=0.10 (e.g., r=10%)? 2) What is the future value at time t=18 for a present value of PV=$1525 (e.g., t=0) if the interest rate is r=0.085 (e.g., r=8.5%)? 3) What is the present value of a future value of FV=$500 at time t=5 if the interest rate is r=0.10 (e.g., r=10%)? 4) What is the present value for a future value of FV=$500,000 at time t=36 if the interest rate is r=0.05 (e.g., r=5%)? 5) What is the interest rate “r” if PV=$100 and the FV=$350 in year t=12? 6) What is the interest rate “r” if PV=$1250 and the FV=$2150 in year t=10? 7) How long will it take to double your investment if the interest rate is r=0.06 (r=6%)?8) How long will it take to increase your investment by 2.5 times if the interest rate is r=0.14 (r=14%)?9) Which is the better option if the interest rate is r=0.10 (r=10%)? Show all work used to arrive at your answer. a. Option I: Receive $1000 today at time…What is the present value for a future value of FV=$500,000 at time t=36 if the interest rate is r=0.05 (e.g., r=5%)? What is the interest rate “r” if PV=$100 and the FV=$350 in year t=12? What is the interest rate “r” if PV=$1250 and the FV=$2150 in year t=10? How long will it take to double your investment if the interest rate is r=0.06 (r=6%)? How long will it take to increase your investment by 2.5 times if the interest rate is r=0.14 (r=14%)? Which is the better option if the interest rate is r=0.10 (r=10%)? Show all work used to arrive at your answer. a. Option I: Receive $1000 today at time t=0. b. Option II: Receive $1615 at time t=5.10) Which is the better option if the interest rate is r=0.07 (r=7%)? Show all work used to arrive at your answer. a. Option I: Receive $510 today at time t=0. b. Option II: Receive $1000 at time t=10.Given the following, construct a choice table for interest rates from 0% to 100%. Year X Y 0 −$10 −$20 1 15 28
- For some interest rate i and some number of interest periods n, the uniform series capital recovery factor is 0.1408 and the sinking fund factor is 0.0408. What is the interest rate? What is n?Compute the number of years (t) if future value (FV) = $5575, present value (FV) = $1812, and interest rate (r) = 9.1%,Find the total value TV of the given income stream and also find its present value PV (at the beginning of the given interval) using the given interest rate. (Round your answers to the nearest cent.) R(t) = 40,000 + 1,000t, 0 ≤ t ≤ 10, at 5% TV = $ PV = $
- Calculate the future value if present value (PV) = $1,020, interest rate (r) = 11.9% and number of years (t) = 15Tabulate the future value factor for interest rates of 5%, 10%, and 15% for n’s from 0 to 20 (in 5’s).Compute the present value if future value (FV) = $4892, interest rate (r) = 14.0%, and number of years (t) = 16.
- Suppose the interest rate is 3.6% b. Having $650 in one year is equivalent to having what amount today? c. Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the money? Why or why not? **round to the nearest cent**Consider the cash flow shown in the graph and assume that the interest rate is 10%. What is the value of X at to ensure that cash flow shown has a future value of $1,500,000? Answer to the closest dollar.How long will it take to double your investment if the interest rate is r=0.06 (r=6%)?