Question: What is the present value of $ 10,000 five years from today if interest is? A. 10 percent compounded annually? B. 10 percent compounded semiannually?

What is the present value of $ 10,000 five years from today if interest is?
A. 10 percent compounded annually?
B. 10 percent compounded semiannually?
C. 10 percent compounded quarterly?
D. Why do the answers above change?

Step by Step Solution

★★★★★

3.43 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a FV 10000 r 10 c 1 n 5 ANN 0 PV 620921 b ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

423-B-A-T-V-M (1639).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

What is the present value of five $800 cash flows that occur at the end of each year for the next five years at a periodic interest rate of 8% compounded annually? The first cash flow occurs a year...

What is the present value of the following uneven cash flow stream? The appropriate interest rate is 10%, compoundedannually. 1 4 years 300 100 300 -50 2.

What is the present value of the following? a. A $300 perpetuity discounted back to the present at 8 percent b. A $1,000 perpetuity discounted back to the present at 12 percent c. A $100 perpetuity...

22. Calculate the present value of $5,000 received five years from today if your investments pay a. 6 percent compounded annually b. 8 percent compounded annually c. 10 percent compounded annually d....

for c,d,e change from 10% to 6% 22. Calculate the present value of $5,000 received five years from today if your investments pay a. 6 percent compounded annually b. 8 percent compounded annually c....

Question 1: Calculate the present value of $5000 received five years from today if your investments pay: 6 percent compounded annually 8 percent compounded annually 10 percent compounded annually 10...

"Please Read Directions Carefully:" "And no plagiarism please." " Doon Excel with formulas . The Calculations must be done on Excel with actual calculations in the cells. Chapter 2 problems 1, 2, 18,...

page 56 change c, d, e from 10% to 4% ased expectations rates is correct, what is the one-year int on Treasury bills during year 3 (E(3r) or 3fi)? (LG 2-8) 22. Calculate the present value of $5,000...

Question 1: Calculate the present value of $5000 received five years from today if your investments pay: 6 percent compounded annually 8 percent compounded annually 4 percent compounded annually 4...

Suppose you are a purchasing officer for a large company. You have purchased 5 million electrical switches, and your supplier has guaranteed that the shipment will contain no more than .1%...

Suppose that {V1, V2, V3} is a linearly independent set of vectors in R6. Further suppose that w is a vector in R6 such that w is not an element of Span(V, V2, V3). Is it true that {V1, V2, V3, w} is...

The ability to discern that a single blurry object is really two separate items is called

a) Under conditions A, the doubly-deuterated product 15 is formed. Draw a mechanism to explain this outcome. b) Under conditions B, the mono-methylated product 16 is formed. Draw a mechanism to...

Show that if [9] = {1, 2, ..., 9} is partitioned into two classes then x1 +x2 + 1 = x3 is solvable in one class.

Consider the following second-order ODE: * - (1-z') 4 + z = 0, t= [0, , z(t = 0) = #(t= 0) = 1 %3D %3D %3D Determine y(x) at the given domain x using: (a) Euler's method with step size h = 0.1 (b)...

Give the major product of the following reactions with the appropriate stereochemistry and regiochemistry: m. CH3 1. Hg(OAc)2, CH3 H3C 2. NaBH4 n. -CH3 Pd/C, D2 H3C CH3 1. CpRu(CH3CN);PF6,...

Explain how the global economy creates both opportunities and threats for managers.

What are the steps to be completed in preparing the opening IFRS statement of financial position?

Income statement preparation On December 31, 2015, Cathy Chen, a self-employed certified public accountant (CPA), completed her first full year in business. During the year, she billed $366,000 for...

The recession has hit hard and your widget corporation business is bleeding cash. You have decided to close the business and you have found other work. You are the sole shareholder of the...

Question 3 of 10 (1 point) | Question Attempt: 1 of 1 2 4 5 6 7 8 9 10 An ordinary (fair) coin is tossed 3 times. Outcomes are thus triples of "heads" (h) and "tails" (f) which we write hth, ttt,...