Question

Calculate, to the nearest cent, the future value FV of an investment of $10,000 at the stated interest rate after the stated amount of time. HINT (See Quick Examples 1 and 2.] 7.5% per year, compounded daily (assume 365 days/year), after 12 years FV = $ Need Help? Read It Watch It Talk to a Tutor . +-/1 points WaneFM7 2.2.012. Calculate the present value PV of an investment that will be worth $1,000 at the stated interest rate after the stated amount of time. HINT (See Quick Example 4.] (Round your answer to the nearest cent.) 4 years, at 7% per year, compounded annually PV = $ Need Help? Read It Watch It Talk to a Tutor Submit Answer Practice Another Version + -/1 points WaneFM7 2.2.014. Calculate the present value PV of an investment that will be worth $1,000 at the stated interest rate after the stated amount of time. HINT (See Quick Example 4.] (Round your answer to the nearest cent.) 8 years, at 5.2% per year, compounded quarterly PV = $ Need Help? + -/1 points WaneFM7 2.2.017. Find the effective annual interest rate r of the given nominal annual interest rate. Round your answer to the nearest 0.01%. 9% compounded quarterly Need Help? Read It Talk to a Tutor

Answer 1

Answer of Requirement 1:

Annual Interest Rate = 7.5% or 0.075

Daily Interest Rate = 0.075 / 365
Daily Interest Rate = 0.000205

N = 365 days * 12 years
N = 4380 days

Future Value = Present Value * (1 + rate)^n
Future Value = $10,000 * (1 + 0.000205)^4380
Future Value = $10,000 *2.4542
Future Value = $24,a542