The future value of $1,000 after 10 years at 6% interest compounded annually. Future Value: Future value refers to the asset value which is arrived at future based on some assumed growth rate at a specific date.

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Answer 1

Question

Chapter 4, Problem 2QP

a.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 6% interest compounded annually.

Future Value:

Future value refers to the asset value which is arrived at future based on some assumed growth rate at a specific date.

b.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

c.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

d.

Summary Introduction

To explain: The reason that the interest earned in part c is not twice the amount earned in part a.

Interest

It refers to the amount that is to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to other.

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Give typing answer with explanation and conclusion Compute the future value of $1,000 compounded annually for A-10 years at 5 percent B-10 years at 7 percent C-20 years at 5 percent D why is the interest earned in part c not twice the amount earned in part a?

(a) Find the present and future value of an income stream of $6000 per year for a period of 10 years if the interest rate, compounded continuously, is 2%. Round your answers to two decimal places. Present value = $ Future value $ (b) How much of the future value is from the income stream? How much is from interest? Round your answers to two decimal places. The amount from the income stream is $ The amount from the interest is $

4.2 Calculating Future Values Compute the future value of $1,250 compounded annually fora. 10 years at 5 percent.b. 10 years at 10 percent.c. 20 years at 5 percent.d. Why is the interest earned in part (c) not twice the amount earned in part (c) not the twice the amount earned in part (a)?

Answer 2

Question

Chapter 4, Problem 2QP

a.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 6% interest compounded annually.

Future Value:

Future value refers to the asset value which is arrived at future based on some assumed growth rate at a specific date.

b.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

c.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

d.

Summary Introduction

To explain: The reason that the interest earned in part c is not twice the amount earned in part a.

Interest

It refers to the amount that is to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to other.

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Answer 3

Question

Chapter 4, Problem 2QP

a.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 6% interest compounded annually.

Future Value:

Future value refers to the asset value which is arrived at future based on some assumed growth rate at a specific date.

b.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

c.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

d.

Summary Introduction

To explain: The reason that the interest earned in part c is not twice the amount earned in part a.

Interest

It refers to the amount that is to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to other.

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Answer 4

Question

Chapter 4, Problem 2QP

a.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 6% interest compounded annually.

Future Value:

Future value refers to the asset value which is arrived at future based on some assumed growth rate at a specific date.

b.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

c.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

d.

Summary Introduction

To explain: The reason that the interest earned in part c is not twice the amount earned in part a.

Interest

It refers to the amount that is to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to other.

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Answer 5

Chapter 4, Problem 2QP

a.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 6% interest compounded annually.

Future Value:

Future value refers to the asset value which is arrived at future based on some assumed growth rate at a specific date.

b.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

c.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

d.

Summary Introduction

To explain: The reason that the interest earned in part c is not twice the amount earned in part a.

Interest

It refers to the amount that is to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to other.

Answer 6

Chapter 4, Problem 2QP

a.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 6% interest compounded annually.

Future Value:

Future value refers to the asset value which is arrived at future based on some assumed growth rate at a specific date.

Answer 7

Chapter 4, Problem 2QP

a.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 6% interest compounded annually.

Future Value:

Future value refers to the asset value which is arrived at future based on some assumed growth rate at a specific date.

Answer 8

b.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

Answer 9

b.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

Answer 10

c.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

Answer 11

c.

Summary Introduction

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

Answer 12

d.

Summary Introduction

To explain: The reason that the interest earned in part c is not twice the amount earned in part a.

Interest

It refers to the amount that is to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to other.

Answer 13

d.

Summary Introduction

To explain: The reason that the interest earned in part c is not twice the amount earned in part a.

Interest

It refers to the amount that is to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to other.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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The future value of $1,000 after 10 years at 6% interest compounded annually. Future Value: Future value refers to the asset value which is arrived at future based on some assumed growth rate at a specific date.

Solution Summary: The author calculates the future value of 1,000 after 10 years at 6% interest compounded annually.

Concept explainers

To compute: The future value of $1,000 after 10 years at 6% interest compounded annually.

Future Value:

Future value refers to the asset value which is arrived at future based on some assumed growth rate at a specific date.

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

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Chapter 4 Solutions

The future value of $1,000 after 10 years at 6% interest compounded annually. Future Value: Future value refers to the asset value which is arrived at future based on some assumed growth rate at a specific date.

Solution Summary: The author calculates the future value of 1,000 after 10 years at 6% interest compounded annually.

Concept explainers

To compute: The future value of $1,000 after 10 years at 6% interest compounded annually. Future Value: Future value refers to the asset value which is arrived at future based on some assumed growth rate at a specific date.

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

To compute: The future value of $1,000 after 10 years at 12% interest compounded annually.

Want to see the full answer?

Chapter 4 Solutions

To compute: The future value of $1,000 after 10 years at 6% interest compounded annually.

Future Value:

Future value refers to the asset value which is arrived at future based on some assumed growth rate at a specific date.