Chapter $5$ Time Value of Money Problems Set R Data

To what amounts will the following investments accumulate?

A$.$ $$36,487$ invested for $17$ years at $5\mathrm{.}0000$ percent compounded annually.

B$.$ $$36,487$ invested for $17$ years at $5\mathrm{.}0000$ percent compounded quarterly.

How many periods will the following take?

A$.$ $$33,333\mathrm{.}30$ to grow to $$50,000$ if invested at $11\mathrm{.}0000$ percent compounded annually.

B$.$ $$33,333\mathrm{.}30$ to grow to $$50,000$ if invested at $11\mathrm{.}0000$ percent compounded semi$-$annually.

At what rate would the following have to be invested?

A$.$ $$135,000$ to grow to $$175,000$ in $10$ years compounded annually.

B$.$ $$135,000$ to grow to $$175,000$ in $10$ years compounded semi$-$annually.

How much would you have to deposit today to receive the following future amounts?

A$.$ $$111,000$ to be received in $9$ years discounted back to the present at $6\mathrm{.}1275$ percent compounded annually.

B$.$ $$111,000$ to be received in $9$ years discounted back to the present at $6\mathrm{.}1275$ percent compounded monthly.

What would the payments be$?$

A$.$ If you finance $$189,000$ for $6$ years, paying $8\mathrm{.}3846$ percent, with monthly payments?

B$.$ If you finance $$189,000$ for $6$ years, paying $8\mathrm{.}3846$ percent, with annual payments?Chapter $5$ Time Value of Money Problems Set R Data

To what amounts will the following investments accumulate?

A$.$ $$36,487$ invested for $17$ years at $5\mathrm{.}0000$ percent compounded annually.

B$.$ $$36,487$ invested for $17$ years at $5\mathrm{.}0000$ percent compounded quarterly.

How many periods will the following take?

A$.$ $$33,333\mathrm{.}30$ to grow to $$50,000$ if invested at $11\mathrm{.}0000$ percent compounded annually.

B$.$ $$33,333\mathrm{.}30$ to grow to $$50,000$ if invested at $11\mathrm{.}0000$ percent compounded semi$-$annually.

At what rate would the following have to be invested?

A$.$ $$135,000$ to grow to $$175,000$ in $10$ years compounded annually.

B$.$ $$135,000$ to grow to $$175,000$ in $10$ years compounded semi$-$annually.

How much would you have to deposit today to receive the following future amounts?

A$.$ $$111,000$ to be received in $9$ years discounted back to the present at $6\mathrm{.}1275$ percent compounded annually.

B$.$ $$111,000$ to be received in $9$ years discounted back to the present at $6\mathrm{.}1275$ percent compounded monthly.

What would the payments be$?$

A$.$ If you finance $$189,000$ for $6$ years, paying $8\mathrm{.}3846$ percent, with monthly payments?

B$.$ If you finance $$189,000$ for $6$ years, paying $8\mathrm{.}3846$ percent, with annual payments?

Jones Stoneware has a liability of $$75,000$ due four years from today. The company is planning to make an

initial deposit today into a savings account and then deposit an additional $$10,000$ at the end of each of the

next four years. The account pays interest of $4\mathrm{.}5$ percent. How much does the firm need to deposit today for

its savings to be sufficient to pay this debt?

$$27,016\mathrm{.}84$

$$19,469\mathrm{.}64$

$$21,400\mathrm{.}33$

$$28,299\mathrm{.}95$

$$22,218\mathrm{.}09$