Determine the present value

Reference no: EM13746560

1. 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.

2. 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?

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

3. 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.

4. 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.

Reference no: EM13746560

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