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What is the interest rate “r” if PV=$1250 and the FV=$2150 in year t=10?
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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…Compute the number of years (t) if future value (FV) = $5575, present value (FV) = $1812, and interest rate (r) = 9.1%,Calculate the future value if present value (PV) = $1,020, interest rate (r) = 11.9% and number of years (t) = 15
- Compute the present value if future value (FV) = $4892, interest rate (r) = 14.0%, and number of years (t) = 16.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
- Compute the interest rate if future value (FV) = $7198, present value (FV) = $2694, and number of years (t) = 9Tabulate the future value factor for interest rates of 5%, 10%, and 15% for n’s from 0 to 20 (in 5’s).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?
- What is the present value of payments that are: year 0: 5000, year1: 10000, year2: 12500, year3: 15000? Discount factor 11%.Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A= $4000.00 r=13.0% t=39 weeksUse the compound interest formula A = P(1 + i)n to find the indicated values A = $6,000; i = 0.03; n = 24; P =?