Time value of money is unquestionably the most important

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Reference no: EM131967541

Time Value of money is unquestionably the most important concept in modern financial management and financial decision-making. Use the time value of money tables or relevant formulae in determining the following:

1. Present value of an annuity of $5,000.00 for ten (10) years at 20% interest rate.

2. Present value of an annuity of $5,000.00 for ten (10) years at 20% interest rate compounded semi-annually.

3. Future value of an annuity of $15,000.00 for ten (10) years at 20% interest rate.

4. Future value of an annuity of $15,000.00 for ten (10) years at 20% interest rate compounded semi-annually.

5. You intend to build a $1,000,000.00 retirement fund over the remaining ten years of your work life. At a compound annual interest rate of 12%, how much must you contribute to the fund every year to accomplish your dream on retirement?

6. Before he was arrested and sentenced to a 20-year prison term for his last bank robbery, a very notorious bank armed robber was able to save his last loot of $250,000.00 into a fixed deposit account at the compound interest rate of 15%. On his release from prison, what would be the amount in his investment account?

(NOTE: All workings must be clearly shown)

Reference no: EM131967541

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