Question: Find the present value given that the future value is $8,000, r=5%, and it is compounded yearly. Repeat this for compounded quarterly and continuously (same

Find the present value given that the future value is $8,000, r=5%, and it is compounded yearly.

Repeat this for compounded quarterly and continuously (same initial value and r).

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 Mathematics Questions!

Q:

Fundamentals of Finance and Banking DFAIDDSY [1] @estion 1 SECTION A ANSWER ALL QUESTIONS. 1. Which of the following has the largest future value if Rs] ,000 is invested today? A. B. C. D. E. Five...

Q:

Section A 12 Multiple Choice Questions; Answer all Questions [Total 30 Marks] 1. How much will $1,000 accumulate to after three years if invested today on a simple interest rate of 5 percent and...

Q:

For a deposit of $1039 at 7 3% over 4 years, find the interest earned if interest is compounded semiannually quan erty monthly, daily, and continuously Type an integer or decimal rounded to the...

Q:

please just provide me answers no detials Find the interest on the following loan. $8000 at 4% for 6 months The simple interest is $|:|. (Round to the nearest cent as needed.) Find the present value...

Q:

Find the Present Value (P) and the Future Value (F) of quarterly payments of P 2,000.00 for 5 years with interest rate of 8% compounded quarterly. Independent Activity 1 Find the Present Value (P)...

Q:

Solve for each problems. Show your solution legible and neatly. Write the question, the given(also what is the given?), what to find and a cash flow diagram. Answers should be in 2 decimal places,...

Q:

PLEASE ANSWER THEM ALL CORRECTLY AND IN COMPLETE SOLUTIONS FOR AN UPVOTE AND POSITIVE RATINGS :) PERFORMANCE TASK NO. 2 A. Show the illustration of the cash flow (Refer to Lesson 3). 1. Monthly...

Q:

Intermediate 1. Multiple compounding periods: Find the future value of an investment of $2,500 made today for the following rates and periods: a. 6.25 percent compounded semiannually for 12 years b....

Q:

If C= 100 +.4Y, 1 = 75, G = 50 and NX = 20 + .2, what is the multiplier? O A. 1.67 O B. 2.5 O C. 0.4 O D. 0.6IfCId =13 2P and [.15 2 3+ P, what would be the new equilbrium quantity if demand...

Q:

Overview question 1 of 9,0 complete Find the present value of the given future payment at the specified interest rate. hat is equivalent $8000 due in 8 years at 4% compounded quarterly unded yearly,...

Q:

The following table gives the value of the Dow Jones Industrial Average (DJIA), NASDAQ, and the S& P 500 on the first day of trading for the years 2008 through 2010. a. For each stock index, compute...

Q:

x - y + z 2 + 42 - 3y + z Show that a mapping T : R R defined by T is linear. = Is is one-to-one transformation? Does the inverse i.e., T-1 exist? If so find it Verify that (by using a...

Q:

( a ) If the shareholders wish to elect S corporation status for Snowshoe s first taxable year, who must consent to the election? What difference would it make if , prior to the election, B sold her...

Q:

Quick Please Question 4 2 Points For the following Binary Search Tree, how many comparisons are need to search for 35? 20 10 40 30 50 A 2 B 4 4 5 D 3 3