Computing present value and future value

Assignment Help Finance Basics

Reference no: EM1327404

Find the future value one year from now of a $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future value if the investment is made for two years.

FV one year
FV two years
Sum of FV's

Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent.

a. What would be the future value if the interest rate is a simple interest rate?

FV using simple interest

b. What would be the future value if the interest rate is a compound interest rate?

FV using compound interest

Find the present value of $7,000 to be received one year from now assuming a 3 percent annual discount interest rate. Also calculate the present value if the $7,000 is received after two years.

PV received one year from now
PV received two years from now

Determine the present value now of an investment of $3,000 made one year from now and an additional $3,000 made two years from now if the annual discount rate is 4 percent.

PV one year from now
PV two years from now

Use a financial calculator or computer software program to answer the following questions.

a. What is the present value of $359,000 that is to be received at the end of twenty-three years, the discount rate is 11 percent, and semiannual discounting occurs?

PV w/ semi-annual discounting

b. How would your answer for (a) change if monthly discounting were used?

PV w/ monthly discounting

Reference no: EM1327404

Questions Cloud

Explaining power and leadership in organization : What is the relationship between power and leadership in an organization? How is power gained?

Find the initial interval for the root search : Write down the corresponding MATLAB code. You should check (just for yourself) how your function works with an arbitrary unsorted array.

Briefly elucidate how knowledge of price elasticity : Briefly elucidate how knowledge of price elasticity between different groups of customers

Prepare the standard cost of direct material : Development of standard costs - Prepare the standard cost of direct material, direct labor and packaging for a 10 gal batch of nerries sherbert.

Computing present value and future value : Find out the future value one year from now of $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future value if the investment is made for two years.

Coimpute how much the shortage or surplus is if there is any : Coimpute how much the shortage or surplus is if there is any.

Explaining aviation aircraft and strict product liability : Draft a concise memorandum outlining the elements a plaintiff must prove in order to impose liability on Cessna under strict liability for accidents involving aircraft sold in the United States.

Give some suggestions for resolving those issues : define some of the issues surrounding widespread access to some of the multiple health knowledge sources available on the internet.

Explain (external factors analysis summary and ifas : Explain EFAS (External Factors Analysis Summary) and IFAS of Google and including what factors you considered and why will be in your MS Word file

User Account

All Pages