With an interest rate of 8% compounded semiannually, the value of a $1,000 investment after 10 years is most nearly equal to? [round to the nearest ten dollars] *
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- 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 annuityHow much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%Define 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?
- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?The present value of $500 to be received 7 years from now at an interest rate of 8percent is ? . The present value of $500 to be received at the end of each year for seven years at adiscount rate of 8 percent is ? .what is the present value of $800 to be received at the end of eight years assuming an interest rate of 20 percent , quaterly compounding
- Determine the discount rate assuming the PV of $1080 at the end of 1-year is $980? $9,800 is deposited for 10 years at 6% compounded annually, determine the FV? What will be the present value, if $6,800 is discounted back 4 years at an interest rate of 4% compounded semi-annually?Determine the future value of $10,000 under each of the following sets of assumptions: Annual Rate Period Invested Interest Compounded1. 10% 10 years Semiannually2. 12 5 years Quarterly3. 24 30 months MonthlyWhat present value P amounts to $290,000 if it is invested at 6%, compounded semiannually, for 17 years? (Round your answer to the nearest cent.)P = $
- Suppose you deposit $2,000 at the end of eachquarter for ten years at an interest rate of 9% compounded monthly. What equal end-of-year depositover the ten years would accumulate the same amountat the end of the ten years under the same interestcompounding? To answer the question, which of thefollowing is correct?(a) A = $2,000(F/A, 2.267%, 4)(b) A = $2,000(F/A, 9%12 , 40) * (A/F, 9%, 10)(c) A = [$2,000(F/A, 2.25%, 40)] * (A/F, 9%, 10)(d) None of the aboveIf interest rate is 10%, the present value of $100,000 to be received one year from now if $90,910.Which two statements are correct?a) The present value of receiving $25,000 at the end of each year for the next four years is lessthan $90,910b) The present value of receiving $25,000 at the end of each year for the next four years is morethan $90,910c) The present value of receiving $50,000 at the end of each year for the next two years is less than$90,910d) The present value of receiving $50,000 at the end of each year for the next three years is lessthan $90,910e) The present value of receiving $50,000 at the end of each year for the next two years is morethan $90,910` What annual interest rate must be obtained to accumulate $10,000 in 8 years on an investment of $6,000 with quarterly compounding? Show all relevant calculation with formula