Question: What present value is needed to grow to $ 3 , 0 0 5 in 1 0 years if the interest rate is 1 0

What present value is needed to grow to $3,005 in 10 years if the interest rate is 10.5% compounded daily? Use Banker's rule and round to two decimal places.

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!

Q:

what present value is needed to grow $2,800 in 10 years of the interest rate is 11.5% compounded daily (bankers rule)

Q:

a.) Please show the calculation to find the present value of an annuity that will pay $4,000 annuity for five years. The interest rate is 3.8% compounded annually. b.) Please show the calculations...

Q:

1. Showing your work, (a) Determine how long it would take to double a present value if it were left in an account subject to an annual simple interest rate of 8%. (b) Does the doubling time found...

Q:

9. For an annuity due of $325 per year for 10 years, which of the following interest rates will result in the largest present value? a. 10%, compounded annually. b. 10%, compounded semiannually c....

Q:

1. A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the purchase price in each of the next 3 years. If you pay the entire bill immediately, you can take a...

Q:

2. Assume you expect to receive $400 in year 1, $500 in year 2, and $400 in year 3. What is the future value of this series of cash flows, assuming 3% annual rate of interest?...

Q:

Question 1 (20 points): Given the cash flow below: Revenue 1,500 1 1,500 2 1,500 3 1,500 4 year 0 Calculate the present value (P) and the future value (F) for the following scenarios: . a) The...

Q:

Annuity Due first payment is at start of the year) *(1+k) l Calculate the future value of 2)Calculate the Present value of $100 Lump sum $250 Future value 3 Years 3 Years 10% Annual Rate 5% Annual...

Q:

please reply if you can answer all the questions. 1. What is the present value of a 15-year annuity that pays $50 per year, assuming 12% annual interest rate ? _________ 2. Assume you currently have...

Q:

I am having a hard time plugging these into excel- our professor wants us to USE excel to grab the answer- the excel sheet i have given is what they prvide us and we are suppose to plug the #'s in to...

Q:

Salomon Brothers proposes to investors a contract called a range forward contract. Here is an example of such a U.S. dollar/British pound contract: The contract has a size of 100,000 and a maturity...

Q:

Select one of the following (either Council of Europe's Convention on Cybercrimes or Reporting Cyberattacks) and address the associated questions. Council of Europe's Convention on Cybercrimes The...

Q:

The applicable exclusion amount ( AEA ) from estate tax for 2 0 1 8 was: $ 2 , 4 1 0 , 0 0 0 . $ 1 1 , 1 8 0 , 0 0 0 . $ 7 , 8 2 0 , 0 0 0 . $ 3 , 7 8 0 , 0 0 0 . $ 5 , 4 3 0 , 0 0 0 .

Q:

Would the Yates correction for continuity help? If so, why? If not, why not? Yes, the Yates correction for continuity is the safest course to take corrective action whenever any of the cells have...