1. Suppose you invest $1,000 on January 31, 2018, earning 10% APR compounded annually. How much...

 

Transcribed Image Text:

1. Suppose you invest $1,000 on January 31, 2018, earning 10% APR compounded annually. How much will you have on January 31, 20287 2. Suppose you invest $1,000 on January 31, 2018, earning 10% APR compounded semi- annually. How much will you have on January 31, 20287 3. At 10% APR compounded quarterly, what will $1,000 grow to in 10 years? 4. At 10% APR compounded monthly, what will $1,000 grow to in 10 years? 5. Suppose you can cam 10% APR compounded annually. How much would you need to invest today (assume it's January 31, 2018) in order to have $1,000 on January 31, 20267 6. Suppose you can earn 10% APR compounded semi-annually. How much would you need to invest today January 31, 2018) in order to have $1,000 on January 31, 2026? 7. At 10% APR compounded quarterly, what is the present value of $1,000 to be received 8 years from now? 8. At 10% APR compounded monthly, what is the present value of $1,000 to be received 8 years from now? 9. You deposit $200 into an account at the end of each month. This money earns 5% interest annually. What will be the value of your money in 10 years if you want to use it to supplement your income? 10. You deposit $200 into an account at the beginning of each month. This money earns 5% interest annually. What will be the value of your money in 10 years if you want to use it 1. Suppose you invest $1,000 on January 31, 2018, earning 10% APR compounded annually. How much will you have on January 31, 20287 2. Suppose you invest $1,000 on January 31, 2018, earning 10% APR compounded semi- annually. How much will you have on January 31, 20287 3. At 10% APR compounded quarterly, what will $1,000 grow to in 10 years? 4. At 10% APR compounded monthly, what will $1,000 grow to in 10 years? 5. Suppose you can cam 10% APR compounded annually. How much would you need to invest today (assume it's January 31, 2018) in order to have $1,000 on January 31, 20267 6. Suppose you can earn 10% APR compounded semi-annually. How much would you need to invest today January 31, 2018) in order to have $1,000 on January 31, 2026? 7. At 10% APR compounded quarterly, what is the present value of $1,000 to be received 8 years from now? 8. At 10% APR compounded monthly, what is the present value of $1,000 to be received 8 years from now? 9. You deposit $200 into an account at the end of each month. This money earns 5% interest annually. What will be the value of your money in 10 years if you want to use it to supplement your income? 10. You deposit $200 into an account at the beginning of each month. This money earns 5% interest annually. What will be the value of your money in 10 years if you want to use it

Answer rating: 100% (QA)

1 Annual Compounding Initial investment P 1000 Interest rate r 10 01 decimal Number of compounding p... View the full answer