FREE Trial

Use equations and a financial calculator to find the following values. See the hint for Problem 2-1. a. An initial

Question:

Use equations and a financial calculator to find the following values. See the hint for Problem 2-1.

a. An initial $500 compounded for 10 years at 6 percent.

b. An initial $500 compounded for 10 years at 12 percent.

c. The present value of $500 due in 10 years at a 6 percent discount rate.

d. The present value of $1,552.90 due in 10 years at a 12 percent discount rate and at a 6 percent rate. Give a verbal definition of the term present value, and illustrate it using a time line with data from this problem. As a part of your answer, explain why present values are dependent upon interest rates.

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 62% (16 reviews)

a b c d 1 552 90 PVIF 12 10 1 552 90 PVIF 6 10 1 552 90 0 3220 500 0…View the full answer


answer-question
Answered By
tutor-profile-image
Pushpinder Singh
Currently, I am PhD scholar with Indian Statistical problem, working in applied statistics and real life data problems. I have done several projects in Statistics especially Time Series data analysis, Regression Techniques. I am Master in Statistics from Indian Institute of Technology, Kanpur. I have been teaching students for various University entrance exams and passing grades in Graduation and Post-Graduation.I have expertise in solving problems in Statistics for more than 2 years now.I am a subject expert in Statistics with Assignmentpedia.com.
4.40+ 3+ Reviews 10+ Question Solved
Related Book For  answer-question
Financial management theory and practice

Financial management theory and practice

ISBN: 978-0324422696

12th Edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: March 16, 2010 03:24:23
See More Questions

Students also viewed these Finance questions

Q:
Use both the TVM equations and a financial calculator to find the following values. a. An initial $500 compounded for 10 years at 6% b. An initial $500 compounded for 10 years at 12% c. The present...
A:
a b c d 0 6......
Q:
Use a computer to find the following values of t. a. t.10, 15 b. t.10, 23 c. t.025, 83 d. t.05, 195
A:
a 1 340......
Q:
Use a computer to find the following values of t. a. t.05, 143 b. t.01, 12 c. t.025, d. t.05, 100
A:
a 1 655......
Q:
In Exercises 1318, find the average rate of change of the function from x 1 to x 2 . f(x) = 3x from x 0 to x = 5
A:
15......
Q:
It is desirable to produce a copper-nickel alloy that has a minimum non-cold-worked tensile strength of 380 MPa (55,000 psi) and a ductility of at least 45%EL. Is such an alloy possible? If so, what...
A:
From Figure 9 6a a tensile strength greater than 38......
Q:
William Gregg owned a mill in South Carolina. In December 1862, he placed a notice in the Edgehill Advertiser announcing his willingness to exchange cloth for food and other items. Here is an...
A:
a 1 pound of butter exchanged for 2 yards of cloth and 4 yards of cloth exchanged for 1 pound of woo......
Q:
Which of the following is an example of referent power? a. Fear that you may lose your job. b. Your friend asks you to do a special favor for him or her. c. The offer of a job promotion. d. Your...
A:
The correct answer is b Your friend asks you to do a s......
Q:
Antoine Dodd purchased one-half of Kyle Bryans interest in the Rich and Bryan partnership for $24,000. Prior to the investment, land was revalued to a market value of $110,000 from a book value of...
A:
a Land 26 000 Zach Rich Capital......
Q:
Bella has always been good at math. She has also always enjoyed art, although she is not naturally talented as an artist. Her father dreams she will be a psychotherapist like he is, but her mother...
A:
i Bella has selected her major based on her intrinsic interest and proficiency in math ii......
Q:
Let X = N x N, and the fuzzy sets: 1 Ha(x) : 1 + 10(x - 2) 1 Hg(y): 1+ 2y? Let the mappings z = f(x, y), f: N N N be the following quadric surfaces 2 (a) ,x E A, y E B. z = + 2 x? y? z2 (b) 15 (c)...
A:
Click to View...
Q:
Find the following values, using the equations, and then work the problems using a financial calculator to check your answers. Disregard rounding differences. (Hint: If you are using a financial...
A:
a 0 1 500 1 06 530 00 50......
Q:
To the closest year, how long will it take $200 to double if it is deposited and earns the following rates? [Notes: (1) See the hint for Problem 2-1. (2) This problem cannot be solved exactly with...
A:
a With a financial calculator enter I 7 PV......
Q:
You are chief executive officer of a toy manufacturing firm. Your firm has been inspected by officials at OSHA, the federal Occupational Safety and Health Administration, for alleged violations of...
A:
If the sanctions imposed by the administrative agencies is unfair one......
Q:
If you have an unknown cylinder of some metal, is there a way to determine its mass using only this experimental apparatus? (just meter stick with a known mass, no additional weights). Assuming the...
A:
To determine the mass of the unknown cylinder using the given experimental apparatus we can set up a......
Q:
Andrea and Scott are meeting with their Financial Planner, Finn Wong, today regarding their retirement. They are both 43 years of age and hoping to retire in 20 years. They have two children, age 10...
A:
Answer To estimate the amount Andrea and Scott will need in the first year of retirement to cover both expenses and taxes we can use their current expenses as a starting point and adjust for inflation......
Q:
Consider a bank. Its deposits represent liabilities and are most likely short term in nature.in other words, deposits represent floating rate liabilities. The bank assets are primarily loans. Most...
A:
The bank faces interest rate risk due to the difference in the nature of its assets and liabilities Specifically 1 Nature of Interest Rate Risk Liabil......
Q:
(a) A circular coil of radius 1cm has 200 turns. It is removed from a magnetic field of 2T in a time of 0.1s. The field direction is normal to the plane of the coil. i. What is the magnitude of the...
A:
Part a i To find the magnitude of the average voltage induced in the coil we can use the following equation t where is the average voltage induced in the coil is the change in magnetic flux through th......
Q:
Guerilla Radio Broadcasting has a project available with the following cash flows: Year 0 1 2 3 4 Cash Flow -$ 16,300 6,700 8,000 3,900 3,500 What is the payback period?
A:
To calculate the payback period you need to find the time it takes......
Q:
Download the data from the Hofstede website on scores of individualism (http://www.geerthofstede.com/dimension-data-matrix). Compare these scores with the Schwartz cultural map (see Figure 11.4)....
A:
Click to View...
Q:
Refer to the information from Exercise 22-19. Use the information to determine the (1) Weighted average contribution margin , (2) Break-even point in units, and (3) Number of units of each product...
A:
Contribution Percentage of Weighted 1 Margin per unit x sales mix Unit CM Easy 20......
Q:
Evaluate the integral. 1 (x + 5)(x - 1) dx
A:
To evaluate the integral 1 x 5 2 x 1 dx you can use partial fraction decomposition First you need to......
Q:
A television set costs $500 in the United States. The same set costs 550 euros in France. If purchasing power parity holds, what is the spot exchange rate between the euro and the dollar?
A:
U S T V 500 French T V 550 euros......
Q:
If British pounds sell for $1.50 (U.S.) per pound, what should dollars sell for in pounds per dollar?
A:
Dollars sho......
Q:
Suppose that 1 Swiss franc could be purchased in the foreign exchange market for 60 U.S. cents today. If the franc appreciated 10 percent tomorrow against the dollar, how many francs would a dollar...
A:
The price of francs is 0 60......
Essential Mathematics For Undergraduates A Guided Approach To Algebra Geometry Topology And Analysis 1st Edition - ISBN: 3030871738 - Free Book