Find the future value one year from now of a 7000

Assignment Help Finance Basics

Reference no: EM13452089

1.Find the future value one year from now of a $7,000 investment at a 3% 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 5 years if the annual interest rate is 8%.

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. Determine the future values if $5,000 is invested in each of the following situations:

a. 5% for ten years

b. 7% for seven years

c. 9% for four years

4. You are planning to invest $2,500 today for three years at a nominal interest rate of 9% with annual compounding.

a. What would be the future value of your investment?

b. Now assume that inflation is expected to be 3% per year over the same three-year period. What would be the investment’s future value in terms of purchasing power?

c. What would be the investment’s future value in terms of purchasing power if inflation occurs at a 9% annual rate?

Reference no: EM13452089

Questions Cloud

Write economic analysis section of business proposal this : select a new realistic good or service for an existing industry.write the economic analysis section of a business

A firm offers terms of 455 net 85 currently two-thirds of : a firm offers terms of 455 net 85. currently two-thirds of all customers take advantage of the trade discount the

You would like to increase your intake of omega-3 fats but : questions 1 to 25 select the best answer to each question. note that a question and its answers may be split across a

Compute demand for dollars and supply of dollars at : suppose that ex is the exchange rate between the u.s. dollar and the chinese yuan in that ex indicates the number of

Find the future value one year from now of a 7000 : 1.find the future value one year from now of a 7000 investment at a 3 annual compound interest rate. also calculate the

Examine the benefits and weaknesses of traditional abc in : examine the benefits and weaknesses of traditional abc in determining accurate overhead costs over a time-driven abc

Calculate the profit or loss if the sale will not be made : locust software sells computer training packages to its business customers at a price of 104. the cost of production in

Describe how fed can affect quantity of excess reserves in : explain how banks are financial intermediaries. what are reserves? what are excess reserves? explain how the fed can

Morgan company received from lee company an invoice dated : 1.morgan company received from lee company an invoice dated september 27. terms were 210 eom. list price on the invoice

User Account

All Pages