List five different financial applications of the time value of money.
Answer to relevant QuestionsYou invest $3,000 for three years at 12 percent.a. What is the value of your investment after one year? Multiply $3,000 × 1.12.b. What is the value of your investment after two years? Multiply your answer to part a by ...Your aunt offers you a choice of $20,100 in 20 years or $870 today. If money is discounted at 17 percent, which should you choose?Mrs. Crawford will receive $7,600 a year for the next 19 years from her trust. If a 14 percent interest rate is applied, what is the current value of the future payments?At a growth (interest) rate of 10 percent annually, how long will it take for a sum to double? To triple? Select the year that is closest to the correct answer.You need $28,974 at the end of 10 years, and your only investment outlet is an 8 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the ...
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