Future value is the result of ______ interest to a present value.
Future value is the result of compound interest to a present value.
The future value is calculated by calculating the compound interest earned over time on the present value
For each of the following, compute the present value: Present Value Years Interest Rate Future Value 15 7% $19,415 8 11 47,382 13 10 312,176 25 13 629,381
Interest rates determine the present value of future amounts. (Round to the nearest dollar.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) 5 (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. Determine the present value of 10-year bonds payable with face value of $87,000 and...
4. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $12,800 will be worth $16, 124.31 three years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? 8.00% 6.40% 7.94% 1.26% for this...
Use future value and present value calculations to determine the following (a) The future value of a $400 savings deposit after eight years at an annual interest rate of 3 percent. Use Table 1. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future value (b) The future value of saving $1,800 a year for five years at an annual interest rate of 4 percent. Use Table 2. (Round time value factor to 3...
1. Solve for future value for each of the following. Present Value $ Years Interest Rate % Future Value $ 460 12 2.5 12,750 3 1.25 143,000 7.5 2.8 189,002 26 4.5
10. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security of $10,000 will be worth $14,693 five years in the future, assuming that no additional deposits or withdrawals are made, what is the Implied interest rate the investor will earn on the security? O 4.80% O 6.00% O 6.40% O...
The quantity (1+r)t is Select one: a. the future value interest factor. b. the present value interest factor. c. the discount factor. d. the present value annuity factor. e. both b and c.
All else equal, which of the answers below will result in a higher future value ? A higher amount of compounding periods A lower interest rate A shorter period of time to maturity A lower present value
1. What is the present value of $400, three years in the future if the interest rate is 1%? 2. X has a term deposit that pays 10% a year and its value after 2 years will be $2,500. What is the present value of X term deposit? 3. A loan Z $10,000 and a year later, Z pays A $10,400. If the inflation rate during that year is 1.5%, what is the real interest rate that Z is paying...
What is the future value of $7,890 at the end of 5 periods at 8% compounded interest? What is the present value of $7,890 due 9 periods hence, discounted at 6%? What is the future value of 16 periodic payments of $7,890 each made at the end of each period and compounded at 10%? What is the present value of $7,890 to be received at the end of each of 19 periods, discounted at 5% compound interest?