14.We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
A=9000*(1.05)^6
=9000*1.34009564
=12060.86(Approx).
15.Future value of annuity=Annuity[(1+rate)^time period-1]/rate
=3000[(1.06)^20-1]/0.06
=3000*36.7855912
=110356.77(Approx)
16.Present value=80,000*Present value of discounting factor(rate%,time period)
=80,000/1.05^6
=80,000*0.746215397
=59697.23(Approx).
please help with questions 14-15 and 16... 14-what will $9000 deposited into a bank today be...
please answer all of the following questions
14. Assume that I will deposit $750 into an account exactly 10 years from today. How much will be in my account at the end of year 60 (i., 60 years from today), assuming that my account pays interest of 4.5% p.a.? 15. What is the future value at the end of year 15 of $10,000 deposited today into an account that pays interest of 4.5% p.a., but with daily compounding (assume 365...
Calculate the future value of the single cash flow deposited today that will be available at the end of the deposit period if the interest is compounded annually, at the rate specified over the given period. Single Cash Flow ($) Interest Rate (%) Years Future Value ($) 939,000 5 6 243,000 16 18 154,000 12 13 592,000 8 27 What is the Future value of each one?
PLEASE help with question 17 and 18...
17-if you win the lottery, and the prize is $50,000 a year for the next 15 years, what lump sum amount would you accept today, assuming 5% interest? 18-you deposit $8000 into a bank account today and earn 6% interest for 5 years, compounded semi annually. What will you have at the end?
please show your work for 19-21
Problems with a little twist (1-6% unless otherwise stated) 16. If $10000 is deposited today with annual interest rate of 6% and each month is desired to withdraw from this account $100, how many times this monthly withdrawals can be done before the money runs out? 17. If we deposit $100 a month for the next 5 years into an account and at the end of 5 years the account has accumulated $10,000 what...
Assignment (Time Value of Money) 1. What is the selling price today of a bond with a face value of $100,000,4% coupon paid annually and maturity of 10 years if market interest rates are: b. 6% c. 2% 2. In exchange for a $20,000 payment today, a well-known company will allow you to choose one of the alternatives shown in the following table, your opportunity cost is 11% Alternative Single Amount $28,000 at the end of 3 years $54,000 at...
deposit today
25,000
value 10 years from today
50,000
r
please help with nuimber 6, but only in EXCEL
CHAPTER 2 The Time Value of Money 47 5. (PV single cash flow) Your friend comes to you with a $2,000 post-dated check. The check is due 2 years from today. If the interest rate is 5%, what is the value of the check today? 6. (PV single cash flow, finding r) If you deposit $25,000 today, Union Bank offers to...
Future Value Computation Peyton Company deposited $10,500 in the bank today, earning 12% interest. Peyton plans to withdraw the money in 5 years. How much money will be available to withdraw assuming that interest is compounded (a) annually, (b) semiannually, and (c) quarterly? Use Excel or a financial calculator for computation. Round your answer to nearest dollar. (a) Annually $ (b) Semiannually $ (c) Quarterly
Future Value Computation Peyton Company deposited $11,000 in the bank today, earning 12% interest. Peyton plans to withdraw the money in 5 years. How much money will be available to withdraw assuming that interest is compounded (a) annually, (b) semiannually, and (c) quarterly? Use Excel or a financial calculator for computation. Round your answer to nearest dollar. (a) Annually (b) Semiannually (c) Quarterly
Question 16 (4 points) If you can earn 5 percent per year, compounded annually, in order to have $2500 in 8 years, today you must invest: Your Answer: Answer units Question 17 (4 points) A bank promises you $15000 in 5 years if you deposit $1000 today. What annually compounded rate of interest is promised you? Your Answer: Answer units
You would like to save annually for buying a car 6 years from today. Suppose the first deposit is made today and the last deposit will be made 5 years from now. Assume the car will cost you $30,000 and your deposits earn you interest at 6% p.a. compounded annually. a. What is your annual deposit amount? b. Instead of making annual deposits, you would like to make your deposit monthly and the bank is happy to pay your interest...