What would be the future value

Assignment Help Finance Basics
Reference no: EM13324128

1. 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?

2. 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.

3. 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 perce

Reference no: EM13324128

Questions Cloud

Calculate the profit at the profit maximizing level : Demand function Q = 20 - 0.2P, MC = 10 + 5Q, given that TFC = $2,000. Derive and equation for TC; Calculate the profit at the profit maximizing level.
Compute the volumes of acid and base necessary : Decide whether to use acetic acid/acetate or formic acid/formate. Prepare .100 L of a pH 3.74 buffer with a total buffer strength of 0.100 M Calculate the volumes of acid and base necessary to make each buffer.
What is the minimum price if the firm can accept : Stlyes Inc. estimates that the total annual cost of producing shirts given equation TC = 5,000 + 4,100Q - 8Q2 + 0.004Q^3.  If the market price is constant, what is the shutdown level of output?
Explain the maximum energy that a hydrogen atom : THE IONIZATION ENERGY OF HYDROGEN. In a normal hydrogen atom, the electron is in the lowest energy state. The maximum energy that a hydrogen atom can have is 0 cm-1
What would be the future value : 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.
Asset management strategic planning : Asset Management Strategic Planning
What is the net charge inside the box : A uniform electric field of magnitude 2500N/C makes an angle of 27 degrees with a plane surface of area 0.355 m2. what is the net charge inside the box
Explain how many grams of riboflavin : How many grams of riboflavin (molecular mass = 374.6g/mol) are required to prepare a 1.00L solution that is 5.00 x 10^-5 M
What is the maximum height the blue ball reaches : A blue ball is thrown upward with an initial speed of 21.6 m/s, from a height of 0.9 meters above the ground. 2.6 seconds after the blue ball is thrown, What is the maximum height the blue ball reaches

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the price of the stock today

If the required return is 12 percent, what is the price of the stock today?

  What does funding risk mean to a firm that is leveraged

Firms that are leveraged face a funding risk. What does "funding risk" mean to a firm that is leveraged?

  What is the annual ocf for the project

Variable costs are 56 percent of sales, depreciation on the equipment to produce the new board will be $1,510,000 per year, and fixed costs are $1,410,000 per year.

  What overhead rate will the company achieve

What overhead rate will the company achieve on the basis of this information? Use direct labor dollars as a base. Can anyone help me with this problem ? Thank you in advanced.

  Computing of bond''s price coupon rate must the bond offer

Computing of bond's price coupon rate must the bond offer and If circular file wants to issues a new 6-year bond at face value

  What is the project discounted payback

Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the project's discounted payback? Round your answer to two decimal places.

  What is standard deviation of the returns for this period

A company had annual returns of 18 percent, -3 percent, 11 percent, and 14 percent over the past 4 years. What is the standard deviation of the returns for this period?

  Find the operating breakeven point and total operating costs

Barry Carter is planning opening a music store. He wants to estimate the number of CDs he must sell to break even. The CDs will be sold for $13.98 each,

  What is the firms accounts payable

Joanna Handicrafts, Inc., has net sales of $3.29 million with 50 percent being credit sales. Its cost of goods sold is $1.97 million. The firm's cash conversion cycle is 56.9 days, and its operating cycle is 82.1 days. What is the firm's accounts ..

  How useful and valid is it to argue that countries

How useful and valid is it to argue that countries can be classified by the different managerial and organisational value they exhibit.

  Period expense, direct cost or indirect cost

Period expense, direct cost or indirect cost.

  What required reserves ratio is implied

If the bank holds $65 million in deposits and currently holds bank reserves such that excess reserves are zero, what required reserves ratio is implied?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd