a.
To Calculate:
Concept Introduction:Future Valueis a value of a present amount on some future date. When present sum increases due to interest rate then that interest plus principle is called as future value. It is calculated by multiplying the future value of rupee 1 to the
b.
To Calculate: Future value of (b).
Concept Introduction:Future Valueis a value of a present amount on some future date. When present sum increases due to interest rate then that interest plus principle is called as future value. It is calculated by multiplying the future value of rupee 1 to the present value.
c.
To Calculate: Future value of (c).
Concept Introduction:Future Valueis a value of a present amount on some future date. When present sum increases due to interest rate then that interest plus principle is called as future value. It is calculated by multiplying the future value of rupee 1 to the present value.
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Chapter 1 Solutions
EBK PERSONAL FINANCE TAX UPDATE
- Determine the future values if $25,000 is invested in each of the following situations:a. 8% for 20 yearsb. 12% for 5 yearsc. 15% for 3 yearsarrow_forward The future value of $400 per year for ten years at 10 percent. The present value of $200 per year for five years at 5 percent. The future value of $200 per year for five years at 5 percent.arrow_forwardThe present value of $77,000 to be received in 2 years, at 12% compounded annually, is (rounded to nearest dollar)Use the present value table in Exhibit 8.arrow_forward
- Determine the present value if $5,000 is received in the future (that is ,at the end of each indicated time period ) in each of the following situations: 5% of 10 yearsarrow_forwardWhat is the present value of 10 equal payments of $21,000 to be made at the end of each year for the next 10 years? The annual interest rate is 10 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar. Present valuearrow_forwardFind the future value FV of the given present value. (Round your answer to the nearest cent.) Present value of $3,660 at 2 3/4% for eight yearsarrow_forward
- Compute the future value of $2,500 continuously compounded for 5 years at an APR of 11 percent. b. Compute the future value of $2,500 continuously compounded for 4 years at an APR of 12 percent. c. Compute the future value of $2,500 continuously compounded for 11 years at an APR of 6 percent. d. Compute the future value of $2,500 continuously compounded for 10 years at an APR of 8 percent.arrow_forwardIf you borrow $15,500 with a 5 percent interest rate to be repaid in seven equal payments at the end of the next seven years, what would be the amount of each payment? Use Exhibit 1 - D. (Round your PVA factor to 3 decimal places and final answer to 2 decimal places.)arrow_forwardWhat is the present value of $2,000 received today, $2,500 received at the end of each of the next ten years and $1,000 received at the end of the 11th year , assuming a required rate of return of 6%?arrow_forward
- What is the Present Value of $500 received in eight years with an interest rate of 8 percent? Please show formula as wellarrow_forwardFind the following values for a lump sum assuming annual compounding: The future value of $500 invested at 8 percent for one year The future value of $500 invested at 8 percent for five years The present value of $500 to be received in one year when the opportunity cost rate is 8 percent. The present value of $500 to be received in five years when the opportunity cost rate is 8 percent.arrow_forwardFind the future value if $3000 is invested for 10 years at 7% compounded annually. (Round your answer to the nearest cent.) $__________________arrow_forward