Find out the future -terminal values

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Reference no: EM13847759 , Length: 1

The following are exercises in future (terminal) values:

a. At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual interest rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent?

b. At the end of five years, how much is an initial $500 deposit followed by five year-end, annual $100 payments worth, assuming a compound annual interest rate of (i) 10 percent? (ii) 5 percent? (iii) 0 percent?

c. At the end of six years, how much is an initial $500 deposit followed by five year-end,annual $100 payments worth, assuming a compound annual interest rate of (i) 10 percent? (ii) 5 percent? (iii) 0 percent?

d. At the end of three years, how much is an initial $100 deposit worth, assuming a quarterly compounded annual interest rate of ( i) 100 percent? (ii) 10 percent?

Reference no: EM13847759

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