Present value concept Answer each of the following questions. a. How much money would you have...
Present value concept Answer each of the following questions. a. How much money would you have to invest today to accumulate $5,500 after 8 years if the rate of return on your investment is 6%? b. What is the present value of $5,500 that you will receive after 8 years if the discount rate is 6%? C. What is the most you would spend today for an investment that will pay $5,500 in 8 years if your opportunity cost is...
Present value concept Answer each of the following questions. a. What single investment made today, earning 8% annual interest, will be worth $5,700 at the end of 10 years? b. What is the present value of $5,700 to be received at the end of 10 years if the discount rate is 8%? c. What is the most you would pay today for a promise to repay you $5.700 at the end of 10 years if your opportunity cost is 8%?...
LG2 4-12 Present value concept Answer each of the following questions. a. What single investment made today, earning 12% annual interest, will be worth $6,000 at the end of 6 years? b. What is the present value of $6,000 to be received at the end of 6 years if the discount rate is 12%? c. What is the most you would pay today for a promise to repay you $6,000 at the end of 6 years if your opportunity cost...
The following situations require the application of the time value of money: Use the appropriate present or future value table: FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1 1. On January 1, 2017, $16,000 is deposited. Assuming an 8% interest rate, calculate the amount accumulated on January 1, 2022, if interest is compounded (a) annually, (b) semiannually, and (c) quarterly. Round your answers to the nearest dollar. Future Value a. Annual...
Time value Personal Finance Problem You have S2.100 to invest today at 9% interest compounded annually a. Find how much you will have accumulated in the account at the end of (1) 4 years, (2) 8 years, and (3) 12 years . Use your findings in part a to calculate the amount of interest earned in (1) the first 4 years (years 1 to 4), (2) the second 4 years (years 5 to 8), and (3) the third 4 years...
1. You have $200 to invest. If you put the money into an account earning 4% interest compounded annually, how much money will you have in 10 years? How much money will you have in 10 years if the account pays 4% simple interest? 2. You have $1,300 to invest today at 5% interest compounded annually. a. Find how much you will have accumulated in the account at the end of (1) 6 years, (2) 12 years, and (3)...
Time value Personal Finance Problem You have S 1,500 to invest today at 7% interest compounded annually. a. Find how much you will have accumulated in the account at the end of (1) 3 years, (2) 6 years, and (3) 9 years. b. Use your findings in part a to calculate the amount of interest eamed in (1) the first 3 years (years 1 to 3), (2) the second 3 years (years 4 to 6), and (3) the third 3...
Time value Personal Finance Problem You have $3.300 to r vest today at 7% nterest compounded annualy a. Find how much you will have accumulated in the account at the end of (1) 6 years, (2) 12 years, and (3) 18 years b. Use your tindings in part a to calculate the amount of interest earned in (1) the trst 6 years ovears 1 to 6), (2) the second 6 years Gears 7 to 12and the hrd 6 years (Gears...
(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: End of Year A B C 1 $1,000 $3,000 $5,000 2 2,000 3,000 5,000 3 3,000 3,000 (5,000) 4 -4,000 3,000 (5,000) 5 4,000 5,000 15,000 a. What is the present value of investment A at an annual discount rate of 9 percent? (Round to the nearest cent.) What is the present value of...
I need help with part b. Thank you. Provided are links to the present and future value tables: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) a. How much would you have to deposit today if you wanted to have $45,000 in five years? Annual interest rate is 8%. b. Assume that you are saving up for a trip around...