2.20. Calculate the future worth 5 years from now of a present sum of $2,000 if:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2.20. Calculate the future worth 5 years from now of a present sum of $2,000 if: (a) Annual interest is 10% compounded annually (b) Annual interest is 10% compounded quarterly (c) Annual interest is 10% compounded continuously 2.21. Calculate the present value of 10 uniform $2,000 payments if: (a) Annual interest is 10% compounded continuously and payments are received at the end of each year (b) Annual interest is 10% compounded continuously and payments are received contin- uously over the year 2.22. A gas station sells $125,000 worth of gasoline over the course of a year. If this revenue is collected and deposited continuously into an account that earns 8% interest, compounded annually, how much money would the station have in its account at the end of the year? 2.23. Develop an Excel® spreadsheet that computes the six functions — (P/A), (P/F), (F/A), (F/P), (A/P), (A/F) - for a fixed interest rate and the number of periods ranging from 1 to 100. 2.24. Use the Excel® NPER function to determine how long it will take for an investment to triple in value at interest rates of 1%, 5%, 10 %, 15%, 20%, and 25%. Can you determine an approximate "Rule" for how to quickly calculate how long it takes for an investment to triple in value? 2.20. Calculate the future worth 5 years from now of a present sum of $2,000 if: (a) Annual interest is 10% compounded annually (b) Annual interest is 10% compounded quarterly (c) Annual interest is 10% compounded continuously 2.21. Calculate the present value of 10 uniform $2,000 payments if: (a) Annual interest is 10% compounded continuously and payments are received at the end of each year (b) Annual interest is 10% compounded continuously and payments are received contin- uously over the year 2.22. A gas station sells $125,000 worth of gasoline over the course of a year. If this revenue is collected and deposited continuously into an account that earns 8% interest, compounded annually, how much money would the station have in its account at the end of the year? 2.23. Develop an Excel® spreadsheet that computes the six functions — (P/A), (P/F), (F/A), (F/P), (A/P), (A/F) - for a fixed interest rate and the number of periods ranging from 1 to 100. 2.24. Use the Excel® NPER function to determine how long it will take for an investment to triple in value at interest rates of 1%, 5%, 10 %, 15%, 20%, and 25%. Can you determine an approximate "Rule" for how to quickly calculate how long it takes for an investment to triple in value?
Expert Answer:
Answer rating: 100% (QA)
220 To calculate the future worth of a present sum we can use the future value formula a Annual interest is 10 compounded annually Future Worth Present Sum 1 Annual Interest RateNumber of Years Future ... View the full answer
Related Book For
Fundamentals Of Thermodynamics
ISBN: 9781118131992
8th Edition
Authors: Claus Borgnakke, Richard E. Sonntag
Posted Date:
Students also viewed these finance questions
-
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
1. As the beneficiary of a life insurance policy, you have two options for receiving the insurance proceeds. You can receive a lump sum of $200,000 today or receive payments of $4,000 every quarter...
-
AutoSave Off File C30 PivotTable Recommended Table Pivot Tables 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 A Enter Home Insert Tables H Price Par Value B X Coupon Rate Payment Frequency...
-
Let X [1 .. n] and Y [1 .. n] be two arrays, each containing n numbers already in sorted order. Give an O (lg n)-time algorithm to find the median of all 2n elements in arrays X and Y.
-
Two steady flows of air enters a control volume, shown in Fig. P6.80. One is 0.025 kg/s flow at 350 kPa, 150C, state 1, and the other enters at 450 kPa, 15C, both flows with low velocity. A single...
-
What the paralegals role is in discovery?
-
In Problem 14.37, NO 2 transport by diffusion in a stagnant atmosphere was considered for steady-state conditions. However, the problem is actually time dependent, and a more realistic approach would...
-
Begin by preparing a vertical analysis of Martin's assets for 2024, then prepare a vertical analysis f 2023. (Round the percent of total amounts Martin Optical Company Balance Sheet (partial)...
-
"Part 1: The Performance Lawn Equipment database contains data needed to develop a pro forma income statement. Dealers selling PLE products all receive 18% of sales revenue for their part of doing...
-
The specific site for CSF production in brain and spinal :cord is in .a dura matter .b pia matter .C arachnoid space choroid plexus .d
-
Yakky Yak (YY) sells Hockey Fantasy Sports smartphone apps and is owned 100% by Tom Green. Sales and net earnings for its most recent fiscal year total $3 million and $350,000, respectively. Tom...
-
Suppose you are interested in the effect of a variable X on another variable Y, and you believe that when X=0, Y is also 0. So you decide to estimate the model: instead of the more standard Y=nX +e...
-
Part 1 (1 point) If the city of Troy passed a law limiting the price of a parking permit to no more than $3, there would be excess demand of permits. Part 2 (1 point) If the city of Troy amends its...
-
We have distinguished several concepts of consciousness -Creature Consciousness, Transitive Consciousness, and Phenomenal Consciousness being the most important. Briefly describe what each of these...
-
examine theoretical constructs such as thinking, learning, and memory and how they occur. examine a related theoretical construct - consciousness. The understanding of consciousness (what it is and...
-
Brown and Sons Ltd. are manufacturers of brass beds in New Jersey, and cater to a global clientele. They are computerizing their working environment and hiring Red Sky IT Systems to develop the...
-
Several months have passed and the Managing Partner approved and properly filed the Complaint and properly submitted the Request for Production of Documents that you drafted. In fact, it has been 75...
-
R-134a at 90 F, 125 psia is throttled in a steady flow to a lower pressure, so it comes out at 10 F. What is the specific entropy generation?
-
A diffuser, shown in Fig. P4.28, has air entering at 100 kPa and 300 K with a velocity of 200 m/s. The inlet cross-sectional area of the diffuser is 100 mm 2 . At the exit the area is 860 mm2, and...
-
Is the dissociation of water pressure sensitive?
-
Describe the steps necessary to create a statement of cash flows.
-
Describe the statement of cash flow operating section created by Quick- Books Accountant.
-
Describe the steps necessary to make changes in the statement of cash flows report layout in order to properly reflect the adjustments needed to reconcile net income with cash provided by operations.
Study smarter with the SolutionInn App