Calculate the future value of an investment

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Problem 1: Calculate the future value of an investment, given the following characteristics:

(a) PV: $30,000, (b) NPER: 25, (c) Rate: 5%.

Problem 2: Using the information from Problem 1, calculate the future value of the same investment using daily compounding

(Hint: Divide the Rate by 365 and multiple the Number of Years by 365).

Problem 3: Calculate the present value of an investment, given the following characteristics:

(a) FV: $120,000, (b) Rate: 14%, and (c) NPER: 20.

Problem 4: Calculate the rate of return on an investment, given the following information:

(a) FV: $50,000, (b) PV: $1,000, and (c) NPER: 15.

Problem 5: Calculate the NPER for an investment, given the following information:

(a) FV: $25,000, (b) PV: $10,000, and (c) Rate: 10%.

Problem 6: Calculate the FV on an ordinary annuity, given the following information:

(a) PMT: $1,000, (b) NPER: 15, and (c) Rate: 10%.

Problem 7: Calculate the PV of an annuity due, given the following information:

(a) PMT: $4,000, (b) Rate: 5%, and (c) NPER: 10.

Problem 8 (Extension Population Growth): If the current population of city X is 1,000,000 citizens, how long would it take for the city to reach 2,000,000 citizens if the growth rate was 5%?

Reference no: EM13882871

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