If an investment has a goal (future value) of $S after n years, invested at interest rate

Question:

If an investment has a goal (future value) of $S after n years, invested at interest rate i (as a decimal), compounded annually, then the present value P that must be invested is given by P = S(1 + i)-n. Find P for the given S, n, and i.

1. $15,000 after 6 years at 11.5%

2. $80,000 after 20 years at 10.5%

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Mathematical Applications for the Management Life and Social Sciences

ISBN: 978-1305108042

11th edition

Authors: Ronald J. Harshbarger, James J. Reynolds

See More Books

Question Posted: Feb 09, 2018 02:47 AM

See More Questions

Interest Compounded Annually. When P dollars is invested at interest rate i, compounded annually, for t years, the investment grows to A dollars, where A = P(1 + i)t. Trevor's parents deposit $8000...
Interest Compounded Annually. When P dollars is invested at interest rate i, compounded annually, for t years, the investment grows to A dollars, where A = P(1 + i)t. When Sara enters the 11th grade,...
Interest Compounded Annually. When P dollars is invested at interest rate i, compounded annually, for t years, the investment grows to A dollars, where A = P(1 + i)t. a) Find the interest rate i if...
M1 is a way to measure... a) the level of bank reserves b) a country's money supply c) the level of savings in a country d) a country's economic potential
An electron is accelerated horizontally from rest in a television picture tube by a potential difference of 5500 V. It then passes between two horizontal plates 6.5 cm long and 1.3 cm apart that have...
Suppose that the random variable X has the continuous uniform distribution Suppose that a random sample of n = 12 observations is selected from this distribution. What is the probability distribution...
A 3/2 solenoid valve is needed for a SIF final element. A CV rating of 0.1 is required. The lowest dangerous failure rate is desired. Which type of solenoid valve is the best choice?
On December 31, 2012, when the market interest rate is 10%, OBrien Realty, Co., issues $800,000 of 7.25%, 10-year bonds payable. The bonds pay interest semiannually. Requirements 1. Determine the...
Bond A is a coupon bond. It has a face value of $100. The coupon rate is 5%, and the market interest rate is 10%. The bond matures in 30 years. Using Excel's functions, calculate price and duration...
Quantcast.com provides the number of people from the United States who visit a given website. The list below shows the number of U.S. visitors for the 50 most highly visited websites (Quantcast.com...
If $P is invested for n years at rate I (as a decimal), compounded annually, the future value that accrues is given by S = P(1 + i)n, and the interest earned is I = S - P. Find S and I for the given...
For selected years from 1960 to 2018, total U.S. personal income I (in billions of dollars) can be approximated by the formula I = 492.4(1.070)t where t is the number of years past 1960. (a) What...
The following table, stored in Smartphone Sales , represents the annual market share (percentage) of smartphones, by type, for the years 2011 through 2016. a. What conclusions can you reach about the...
Operating cash flow was 43.0 million (2008: 30 million), representing 93% of adjusted operating profit, despite an increase in stock and debtors commensurate with the growth of the business. Net debt...
The following report indicates that Network Rail was focused on investment appraisal procedures in 2004 at the start of a five-year regulatory period. John Armitt, chief executive of Network Rail,...
When Rachel Lilley started her florists business in Bath nearly three years ago, it was an instant success. With a steady stream of customers at her small shop and a run of weddings to cater for, her...
The Groups gross transaction value grew by 0.2% during the 52 weeks ended 29 August 2009 to 2,339.7 million (2008: 2,336.0 million) and revenue was up by 4.2% to 1,915.6 million (2008: 1,839.2...
The sales budget for the BeeSee Company for the first six months of the year is: January February March April May June 12,000 13,000 14,000 13,500 12,600 11,100 There are no debtors at the start of...
In Problem 9.6, what is your statistical decision if you test the null hypothesis at the 0.10 level of significance? In Problem 9.6 What is the p-value if, in a two-tail hypothesis test, Z STAT =...
In July 2013, cnet.com listed the battery life (in hours) and luminous intensity (i. e., screen brightness, in cd/m2) for a sample of tablet computers. We want to know if screen brightness is...
Perform the indicated operations and simplify. (a) 4y 5(9 3y) (b) 3t 2 (2t 4 3t 7 ) (c) (4x 1)(x 2 5x + 2) (d) (6x 1)(2 3x) (e) (2m 7) 2 (f) (g) (h) (i) 3 3x?
In a nutrition survey of 320 students, the following information was obtained. 145 ate breakfast 270 ate lunch 280 ate dinner 125 ate breakfast and lunch 110 ate breakfast and dinner 230 ate lunch...
If $1000 is invested for x years at 8% compounded quarterly, the future value of the investment is given by What will be the future value of this investment in 20 years? 0.08 S = 1000| 1 + \4x 4
What is one way in which a leader can apply the "Status" part of the SCARF model to trigger the "Reward" response?
Complete the table to assess risks and develop contingencies for resources you are planning for. Potential risks Planned Response Risk associated with the acquisition or implementation of the...
Assignment: persuasive essay for or against Andrew Jackson. In you essay answer the question "Was he a "people's president" or was he more like a king?" Documentary:...

If an investment has a goal (future value) of $S after n years, invested at interest rate

Question:

Step by Step Answer:

1 S 15000 n 6 i 0115 P S 1 i n 1...View the full answer

Mathematical Applications for the Management Life and Social Sciences

Students also viewed these Calculus questions