C. $500(1 + 0.025)20
FV = PV(1 + r)t
where, PV = $500
r = 0.10 / 4 = 0.025 or 2.5%
t = 5 * 4 = 20
FV = $500(1 + 0.025)20
6. Which of the following equations represent the future value formula of $500 invested at 10%...
Which of the following investments will have the highest future value? $1,300 invested at an annual interest rate of 10% for 5 years O $1,000 invested at an annual interest rate of 10% for 10 years O $1,300 invested at an quarterly interest rate of 2.25% for 5 years $1,000 invested at an quarterly interest rate of 2.25% for 10 years
What is the future value of $1 invested for 10 years if the 12 percent annual rate of interest is compounded quarterly? (A) $2.93 B $3.25 $3.26 $2.30
FUTURE VALUE FOR VARIOUS COMPOUNDING PERIODS Find the amount to which $500 will grow under each of these conditions: a. 12% compounded annually for 5 years b. 12% compounded semiannually for 5 years c. 12% compounded quarterly for 5 years d. 12% compounded monthly for 5 years e. 12% compounded daily for 5 years f. Why does the observed pattern of FVs occur?
1. What is the value of the following investments in the future? (show your work): a) b) c) d) e) $6,000 invested for 5 years at 16% compounded quarterly?.. $9,000 invested for 7 years at 8% compounded semi-annually? $875 invested for 1 year at 12% compounded monthly?» $22,000 invested for 5 years at 5% compounded annually?» How long will it take to double your investment if the interest rate is 3%?
What is the future value of $1,565 invested for 6 years at 2.2 percent compounded quarterly? Round your answer to two decimal places.
2. Determine the future value amount of $400 invested at 6% per annum compounded quarterly for three years and five months. 3. A demand loan of $10,000 is repaid by payments of $5000 in one year, $6000 in four years, and a final payment in six years. Interest on the loan is at 10% per annum compounded quarterly during the first year, 8% per annum compounded semi-annually for the next three years and 7.5% per annum compounded annually for the...
1. In a future value of 1 table: Annual Rate Number of Years Invested Compounded () Rate of Interest (b) Number of Periods a. 10% Annually b. 8% Quarterly 10% Semiannually 2. In a present value of an annuity of 1 table: Annual Rate Number of Years Invested Number of Rents Involved Frequency of Rents (a) Rate of Interest (6) Number of Periods 1096 26 Annually 12% 15 30 Semiannually 8% Quarterly LINK TO TEXT Question Attempts: 0 of 3...
please provide formula answer is provided What is the future value of $1,650 invested at 24.75%, over 2.5 years, compounded monthly? answer is $3044.18 2. What is the annual payment required to save $2,000,000, over 40 years, compounded monthly at 6%? answer is 12923.071841351
1. What is the future value in 7.4 years of $8651 invested in an account with a stated annual interest rate of 10%, compounded annually? 2. What is the future value in 14 years of $818 invested in an account with a stated annual interest rate of 4.3%, compounded semi-annually? 3. What is the future value in 5 years of $7922 invested in an account with a stated annual interest rate of 5.8%, compounded monthly 4. What is the future...
Suppose we want to find the future value of $6,000 invested at 8.5% compounded continuously for 7 years. ir mt A. Periodic Compound Interest: S = P(1+ – m / B. Continuously Compounded Interest: S = Pe” [(1 + 5)mt – 1] C. Future Value of an Ordinary Annuity: S = R || 11- D. Present Value of an Ordinary Annuity: P = R Il + 1. Choose the correct formula above for this scenario. - 2. What is the...