Question: Adjust the annual formula for a future value of a
Adjust the annual formula for a future value of a single amount at 12 percent for 10 years to a semiannual compounding formula. What are the interest factors (FVIF) before and after? Why are they different?
Answer to relevant QuestionsList five different financial applications of the time value of money.If you invest $9,000 today, how much will you have?a. In 2 years at 9 percent?b. In 7 years at 12 percent?c. In 25 years at 14 percent?d. In 25 years at 14 percent (compounded semiannually)?You invest a single amount of $10,000 for 5 years at 10 percent. At the end of 5 years you take the proceeds and invest them for 12 years at 15 percent. How much will you have after 17 years?Christy Reed has been depositing $2,000 in her savings account every December since 2001. Her account earns 7 percent compounded annually. How much will she have in December 2012? (Assume that a deposit is made in December ...Your grandfather has offered you a choice of one of the three following alternatives: $7,500 now; $2,200 a year for nine years; or $31,000 at the end of nine years. Assuming you could earn 10 percent annually, which ...
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