![Future Value of Account A Note: Account A pays simple interest. Future ValueA = Principal + Interest Principal + [(Principal x Interest Rate) x Investment Period] $2,000 + [($2,000 x 996) x 3 years] = Round your answer to two decimal places. Future Value of Account X Note: Account X pays compound interest. Future Valuex = Present Value x Interest Rate Factor Present Valuex(1 +Interest Rate)n years $2,000 x (1 + 0.09)3 = - Round your answer to two decimal places. To find the interest rate factor, you can use three different ways, including multiplying it out: Interest Factor(1 0.09) x (1 0.09) x (1 0.09)1.2950 Or using exponents and calculating it directly: Interest Factor(10.09)31.2950 Or looking up the value in the Future Value Interest Factor Table: Interest Factors Periods 6% 7% 8% 9% 1090 1190 1.0600 1.0700 1.0800 1.0900 1.1000 1.1100 2 1.1236 1.1449 1.1664 1.1881 1.2100 1.2321 1.1910 1.2250 1.2597 1.2950 1.3310 1.3676 4 1.2625 1.3108 1.3605 1.4116 1.4641 1.5181](http://img.homeworklib.com/questions/b6c49b60-3cf2-11ea-943f-538bc3da8699.png?x-oss-process=image/resize,w_560)
Homework Answers
1)
Future value paying simple interest = Principal + [( principal * interest) * investment period]
Future value paying simple interest = $2,000 + [ ( $2,000 * 9%) * 3]
Future value paying simple interest = $2,000 + 540
Future value paying simple interest = $2,540
2)
Future value paying compound interest = Present value * ( 1 + interest)n
Future value paying compound interest = $2,000 * ( 1 + 0.09)3
Future value paying compound interest = $2,000 * 1.295029
Future value paying compound interest = $2,590.058
3)
Difference = $2,590.058 - 2,540
Difference = $50.058
Add Answer to:
Future Value of Account A Note: Account A pays simple interest. Future ValueA = Principal +...
Future Value of Account A Note: Account A pays simple interest. Future Value Principal + Interest...
Future Value of Account A Note: Account A pays simple interest. Future Value Principal + Interest Principal + [(Principal x Interest Rate) x Investment Period] $2,000 + [($2,000 x 6%) x 3 years] Future Value of Account X Note: Account X pays compound interest. Future Valuex = Present Value x Interest Rate Factor Present Value x (1 + Interest Rate)N $2,000 (1 + 0.06)3 $ To find the interest rate factor, you can use four different ways, including multiplying it...
2. Future value Aa Aa E The principal of the time value of money is probably...
2. Future value Aa Aa E The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a future value. The process for converting present values into future values is called . This process requires knowledge of the values of three of four time-value-of-money variables. Which of the following is not one of these variables? T O The interest rate (1) that...
Exercise B-5 Future value of an amount LO P2 Mark Welsch deposits $7,200 in an account...
Exercise B-5 Future value of an amount LO P2 Mark Welsch deposits $7,200 in an account that earns interest at an annual rate of 8%, compounded quarterly. The $7.200 plus earned interest must remain in the account 10 years before it can be withdrawn. How much money will be in the account at the end of 10 years? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table...
Future values. Fill in the future values for the following table, using one of the three...
Future values.
Fill in the future values for the following table, using one of
the three methods below:
a. Use the future value formula,
FV equals PV times left parenthesis 1 plus r right parenthesis
Superscript nFV=PV×(1+r)n.
b. Use the TVM keys from a calculator.
c. Use the TVM function in a spreadsheet.
Number of Periods Future Value Present Value $282.00 $17,476.00 $37,595.00 $27,545.00 Interest Rate 4% 7.5% 11% 16% 26
part 1 given info present value = periodic interest rate = number of compounding periods =...
part 1 given info present value = periodic interest rate = number of compounding periods = 190.00 0.080 6.00 What is the future value (single payment)? part 2 future value periodic interest rate = number of compounding periods = 301.51 0.080 6.00 what is the present value (single payment)? part 3 periodic payment periodic interest rate = number of compounding periods = 340.00 0.02 8.00 What is the future value of this annuity? part 4 present value (amount borrowed) =...
The principal of the time value of money is probably the single most important concept in...
The principal of the time value of money is probably the single most important concept in financial management. One of the most frequenty encountered applications involves the calculation of a future value. The process for converting present values into future values is called knowledge of the values of three of fourtime-value-of-money variables. which of the following is not one of these This process requires ariables? O The interest rate (1) that could be eamed by deposited funds O The duration...
Calibri (Body) abc Wrap Tex Number % ting Future Val Nm Interest Rate FV inerest Factor...
Calibri (Body) abc Wrap Tex Number % ting Future Val Nm Interest Rate FV inerest Factor 2.5937 $8752 $7685 S183,796 $2,500,000 0 0 OPINIMIS ante Future Value of $1 (PV) int periods: pmt = 0 Excel Formula Viratenpar. O. D) This is called Future Value Interest Factor (FVIFY For Example =FV(10%.10,0,1) is FV for $1 today in 10 yrs @10% 2.5937 =FV(10%/365,365,0.-1) 1.1052 APR A N NA
You wish to buy a car for $12,000 at a 5% annual interest rate, compounded monthly....
You wish to buy a car for $12,000 at a 5% annual interest rate,
compounded monthly. The loan will be repaid in 5 years with monthly
payments. What is your monthly payment (calculated with the
equations on the next page)? Compare your answer to that obtained
with the built in function, PMT. Be sure to label all cells
appropriately. (There is no need to create a monthly payment table,
simply use the equations on the next page.)
Loans: where: and,...
Future Value Factor for a Single Present Amount (Interest rate = r, Number of periods =...
Future Value Factor for a Single Present Amount (Interest rate = r, Number of periods = n) nir 1 10 11 12 13 1% 1.0100 1.0201 1.0303 1.0406 1.0510 1.0615 1.0721 1.0829 1.0937 1.1046 1.1157 1.1268 1.1381 1.1495 1.1610 1.1726 1.1843 1.1961 1.2081 1.2202 2% 3% 4% 5% 1.0200 1.0300 1.04001.0500 1.0404 1.0609 1.0816 1.1025 1.0612 1.0927 1.12491.1576 1.0824 1.1255 1.1699 1.2155 1.1041 1.1593 1.2167 1.2763 1.1262 1.1941 1.2653 1.3401 1.1487 1.2299 1.3159 1.4071 1.1717 1.2668 1.36861.4775 1.1951 1.3048 1.4233...
Calculator Compound Interest With compound Interest, the interest is added to principal in the calculation of...
Calculator Compound Interest With compound Interest, the interest is added to principal in the calculation of interest in future periods. This addition of interest to the principal is called compoundin This differs from simple interest, in which interest is computed based upon only the principal. The frequency with which interest is compounded per year will dictate many interest computations are required (1.e. annually is once, semi-annually is twice, and quarterly is four times). Imagine that Bolden Co., fearing that you...
Future Value of Account A Note: Account A pays simple interest. Future Value Principal + Interest Principal + [(Principal x Interest Rate) x Investment Period] $2,000 + [($2,000 x 6%) x 3 years] Future Value of Account X Note: Account X pays compound interest. Future Valuex = Present Value x Interest Rate Factor Present Value x (1 + Interest Rate)N $2,000 (1 + 0.06)3 $ To find the interest rate factor, you can use four different ways, including multiplying it...
2. Future value Aa Aa E The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a future value. The process for converting present values into future values is called . This process requires knowledge of the values of three of four time-value-of-money variables. Which of the following is not one of these variables? T O The interest rate (1) that...
Exercise B-5 Future value of an amount LO P2 Mark Welsch deposits $7,200 in an account that earns interest at an annual rate of 8%, compounded quarterly. The $7.200 plus earned interest must remain in the account 10 years before it can be withdrawn. How much money will be in the account at the end of 10 years? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table...
Future values.
Fill in the future values for the following table, using one of
the three methods below:
a. Use the future value formula,
FV equals PV times left parenthesis 1 plus r right parenthesis
Superscript nFV=PV×(1+r)n.
b. Use the TVM keys from a calculator.
c. Use the TVM function in a spreadsheet.
Number of Periods Future Value Present Value $282.00 $17,476.00 $37,595.00 $27,545.00 Interest Rate 4% 7.5% 11% 16% 26
part 1 given info present value = periodic interest rate = number of compounding periods = 190.00 0.080 6.00 What is the future value (single payment)? part 2 future value periodic interest rate = number of compounding periods = 301.51 0.080 6.00 what is the present value (single payment)? part 3 periodic payment periodic interest rate = number of compounding periods = 340.00 0.02 8.00 What is the future value of this annuity? part 4 present value (amount borrowed) =...
The principal of the time value of money is probably the single most important concept in financial management. One of the most frequenty encountered applications involves the calculation of a future value. The process for converting present values into future values is called knowledge of the values of three of fourtime-value-of-money variables. which of the following is not one of these This process requires ariables? O The interest rate (1) that could be eamed by deposited funds O The duration...
Calibri (Body) abc Wrap Tex Number % ting Future Val Nm Interest Rate FV inerest Factor 2.5937 $8752 $7685 S183,796 $2,500,000 0 0 OPINIMIS ante Future Value of $1 (PV) int periods: pmt = 0 Excel Formula Viratenpar. O. D) This is called Future Value Interest Factor (FVIFY For Example =FV(10%.10,0,1) is FV for $1 today in 10 yrs @10% 2.5937 =FV(10%/365,365,0.-1) 1.1052 APR A N NA
You wish to buy a car for $12,000 at a 5% annual interest rate,
compounded monthly. The loan will be repaid in 5 years with monthly
payments. What is your monthly payment (calculated with the
equations on the next page)? Compare your answer to that obtained
with the built in function, PMT. Be sure to label all cells
appropriately. (There is no need to create a monthly payment table,
simply use the equations on the next page.)
Loans: where: and,...
Future Value Factor for a Single Present Amount (Interest rate = r, Number of periods = n) nir 1 10 11 12 13 1% 1.0100 1.0201 1.0303 1.0406 1.0510 1.0615 1.0721 1.0829 1.0937 1.1046 1.1157 1.1268 1.1381 1.1495 1.1610 1.1726 1.1843 1.1961 1.2081 1.2202 2% 3% 4% 5% 1.0200 1.0300 1.04001.0500 1.0404 1.0609 1.0816 1.1025 1.0612 1.0927 1.12491.1576 1.0824 1.1255 1.1699 1.2155 1.1041 1.1593 1.2167 1.2763 1.1262 1.1941 1.2653 1.3401 1.1487 1.2299 1.3159 1.4071 1.1717 1.2668 1.36861.4775 1.1951 1.3048 1.4233...
Calculator Compound Interest With compound Interest, the interest is added to principal in the calculation of interest in future periods. This addition of interest to the principal is called compoundin This differs from simple interest, in which interest is computed based upon only the principal. The frequency with which interest is compounded per year will dictate many interest computations are required (1.e. annually is once, semi-annually is twice, and quarterly is four times). Imagine that Bolden Co., fearing that you...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago