Question: Please show your work. *** 1. What is the future value of $5,000 in 10 years at 5%, compounded monthly? 2. What is the future

Please show your work. ***

1. What is the future value of $5,000 in 10 years at 5%, compounded monthly?

2. What is the future value of $10,000 in 8 years at 8%, compounded quarterly?

3. If you receive $10,000 in 5 years, what is its value today if the appropriate interest rate is 8% and interest is compounded semi-annually?

4. If you received $10,000 5 years back, what is its value today if the appropriate interest rate is 8% and interest is compounded monthly?

5. At what annual rate of return can you triple your money in 8 years if interest is compounded monthly?

6. At what annual rate of return can you quadruple (means 4 times) your money in 16 years, if interest is compounded quarterly?

7. How many periods will it take you to quadruple (means 4 times) your money at 7%, if interest is compounded semi-annually? how many years will it take?

8. How many periods will it take $500 to grow to$8,000 if you believe you can earn interest at the rate of 9% compounded monthly? how many years will it take?

9. What is the present value of $15,500 received in 10 years if interest of 1% is compounded monthly?

10. What is the present value of $22,000 received in 5 years if interest of 1% is compounded quarterly?

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!

CORPORATE FINANCE QUESTIONS 1. What is the future value of $5,000 in 10 years at 5%, compounded monthly? 2. What is the future value of $10,000 in 8 years at 8%, compounded quarterly? 3. If you...

finance 1. What is the future value of $5,000 in 10 years at 5%, compounded monthly? 2. What is the future value of $10,000 in 8 years at 8%, compounded quarterly? 3. If you receive $10,000 in 5...

1. What is the Future Value of $20,000 invested for 10 years at 5% compounded quarterly? 2. Repeat #1 but change the compounding to monthly. What is the Present Value of $25,000 to be received in 5...

1 . What is the future value of $ 3 , 1 1 8 invested for 1 0 years at 6 . 4 percent compounded annually? 2 . What is the present value of $ 1 2 , 9 5 0 to be received 3 years from today if the...

PART A 1. What is the future value of $ 8000 invested for 10 years at 7 percent compoundedsemi- annually? (4 marks) 2. If you put your inheritance in an account that earns 8 percent interest...

PART A 1. What is the future value of $ 8000 invested for 10 years at 7 percent compoundedsemi - annually? (4 marks) 2. If you put your inheritance in an account that earns 8 percent interest...

Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods. $50,930 receivable at the end of each period for 9 periods...

Please show your work! 6) What is the future value of the following cash flows at the end of year 3 if the interest rate is 7.25%? The cash flows occur at the end of each year. Year 1: $6800 Year 2:...

Cathy's Cats is considering launching a new toy, Sir Issac Mewton. Cathy's Cats already paid $185,000 for a marketing survey to determine the viability of the new toy. You have collected the...

1. An insurance company is offering a new policy for its customers. Typically the policy is bought by a parent or grandparent for a child at the child birth. The details of the policy are as follows:...

The management of Gibralter Inc. collected the following data over the most recent 12 months: Required Compute the coefficient of correlation, r, and the coefficient of determination, r2, for...

What is the excess charge on a conducting sphere of radius r = 0.15 m if the potential of the sphere is 1500 V and V = 0 at infinity?

A traffic engineer wants to predict the number of road accidents at intersections in a major urban area. He believes the main determinants are volume of traffic and whether or not the intersection...

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

Describe the seven standard parts of a letter.

Explain how to develop effective Internet-based messages.

Identify the advantages and disadvantages of written messages.