Question: a . Assuming a rate of 1 0 % annually, find the FV of $ 1 , 0 0 0 after 5 years. b .

a. Assuming a rate of 10% annually, find the FV of $1,000 after 5 years.
b. What is the investment's FV at rates of 0%,5%, and 20% after 0,1,2,3,4, and 5 years?
c. Find the PV of $1,000 due in 5 years if the discount rate is 10%.
d. What is the rate of return on a security that costs $1,000 and returns $2,000 after 5 years?
e. Suppose California's population is 40 million people and its population is expected to grow by 2% annually. How long will it take for the population to double?
f. Find the PV of an ordinary annulty that pays $1,000 each of the next 5 years if the interest rate is 15%. What is the annuity's FV?
g. How will the PV and FV of the annuity in part f change if it is an annuity due?
h. What will the FV and the PV be for $1,000 due in $ years if the interest rate is 10%, semiannual compounding?
i. What will the annual payments be for an ordinary annuity for 10 years with a PV of $1,000 if the interest rate is 8%? What will the payments be if this is an annuity due?
f. Find the PV and the FV of an investment that pays 8% annually and makes the following end-of-year payments:
a . Assuming a rate of 1 0 % annually, find the

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!