If $2000 is invested right now at 3.7% interest with annual compounding, then the 

value of the investment at the end of 10 years is:

2.) If $3000 is invested right now at 4.8% interest compounded quarterly, then the value

of the investment at the end of 7 years is:

3.) If $5000 is invested right now at 6.6% compounded monthly, then the value of the

investment at the end of 11 years is:

4.) If $1900 is invested right now at 5% interest compounded continuously, then the value

of the investment at the end of 4 years is:

5.) Find the present value of an investment that will have a value of $15,000 in 12 years,

assuming 3% interest compounded semiannually.

6.) Find the present value of an investment that will have a value of $27,000 in 16 years

assuming 10% interest compounded continuously.

7.) Find the effective annual rate of interest associated to a rate of 8.4% compounded

monthly.

8.) Find the effective annual rate of interest associated to a rate of 11% compounded

continuously.

 

 

9.) Find the present value of a perpetuity of $2500 annual payments, where the first

payment is to be made in 1 year and the effective annual rate of interest is 5.7%.

10.) Suppose that you invest $1000 at an interest rate of 8% compounded annually. But

the rate of inflation is 5%. What is the value of your investment in 10 years, in

constant-value dollars?

11.) If an investment has an interest rate of 3.7% compounded annually and the annual

rate of inflation is 3.1%, what is the true annual rate of return on your investment,

with inflation factored in?

12.) Suppose that an investment has an interest rate of 7.6% compounded continuously.

But the annual rate of inflation is 4.1%. What is the true annual rate of return on

your investment, taking inflation into account?

Answer rating: 100% (QA)

To solve these financial calculations we can use the formulas for compound interest and present value Here are the solutions to the given problems 1 If 2000 is invested right now at 37 interest with a... View the full answer