Drawn about the frequency of compounding interest

Reference no: EM13190482

Calculate the future value of the following:
?
o $5,000 compounded annually at 6% for 5 years
o $5,000 compounded semiannually at 6% for 5 years
o $5,000 compounded quarterly at 6% for 5 years
o $5,000 compounded annually at 6% for 6 years
?
? Answer the following: What conclusions can be drawn about the frequency of compounding interest? What conclusions can be drawn about the length of time an amount is compounding?
?
? Calculate the present value of the following:
?
o $7,000 in 5 years at an annual discount rate of 6%
o $7,000 in 5 years at a semiannual discount rate of 6%
o $7,000 in 5 years at a quarterly discount rate of 6%
o $7,000 in 6 years at an annual discount rate of 6%

Answer the following: What conclusions can be drawn about the frequency of the discounting interval? What conclusions can be drawn about the length of time until the receipt of that value?

Answer the following: Assume you have a choice between two annuity contracts. Contract A pays $5,000 per year for 5 years starting one year from today. Contract B pays $5,000 per year for 5 years starting today. The discount rate for each is 6%. Which annuity contract would you choose for your retirement? Why?

Reference no: EM13190482

Questions Cloud

Approximately how fast are the crickets chirping : Biologists have noticed that the chirping of crickets of a certain species is related to temperature, and the relationship appears to be very nearly linear. A cricket produces 115 chirps per minute at 67 degrees Fahrenheit and 176 chirps per minut..

What is the expected number of batters with an average : The mean batting average in a certain baseball league is about 0.210. Supposing that batting averages are normally distributed, that the standard deviation in the averages is 0.08, and that there are 210 batters, what is the expected number of bat..

Explain what each means in terms of the sand dune : Using units, explain what each means in terms of the sand dune.

What amount of water-soluble boron available : Many factors influence a plant's uptake of boron from the soil, but one key factor is soil type. One experiment† compared plant content C of boron, in parts per million, with the amount B, in parts per million, of water-soluble boron in the soil.

Drawn about the frequency of compounding interest : Answer the following: Assume you have a choice between two annuity contracts. Contract A pays $5,000 per year for 5 years starting one year from today. Contract B pays $5,000 per year for 5 years starting today. The discount rate for each is 6%. W..

Define was the project successful : ( 1) Materials Cost Per Tire (2) Labor Cost Per Tire (3) Average Profit Per Tire (4) % Increase or Decrease in Materials cost Per Tire (5) % Increase or Decrease in Labor cost Per Tire (6) % Increase or Decrease in Average Profit Per ..

Which series did you use for the limit comparison test : Determine, using the limit comparison test, whether the series with terms (n^4 + 3n)/(5n^3 + 9) converges or diverges. Which series did you use for the limit comparison test.

Write the following statements as integers : Write the following statements as integers.

Pros and cons of ga based algorithm : Pros and Cons of this algorithm - example and then show each step of the GA based algorithm numerically.

User Account

All Pages