Question

I am making an investment today in an account providing 3% annual interest compounded annually. Identify the details below that I need in order to determine the dollar amount I must invest today in order to have $50,000 in 5 years.

What table must I use to find the relevant factor?

- Future value of single-sum
- Present value of single-sum
- Future value of ordinary annuity
- Present value of ordinary annuity

What is the interest rate to find the relevant factor?

What are the number of periods (n) to find the relevant factor?

What is the dollar amount I must invest today in order to have $50,000 in 5 years?

Answer #1

I want to establish a savings account today, providing 24%
annual interest compounded monthly, so that I can withdrawal $6,000
at the end of each of the next 3 years. Identify the details below
that I need in order to determine how much money I must have in the
savings account today.
What table must I use to find the relevant factor?
Future value of single-sum
Present value of single-sum
Future value of ordinary annuity
Present value of ordinary annuity...

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Two required considerations:
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You have $5,100 to invest today at 11% interest compounded
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the end of: (0.5 Marks each)
(1) 4 years,
(2) 8 years, and
(3) 12 years.
Using the values below, answer the questions that follow:
Amount of annuity
Interest rate
Deposit period (years)
$500
9%
10
Calculate the future value of the annuity, assuming that it is
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An annuity due. (0.5 marks)
Compare...

What amount must be invested today at an annual interest rate of
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a) What is the number of time periods (N) you should use in
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b) What rate of interest (i), per period of time, should be used
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c) Is the present single amount of money (P) known? (Yes or
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5-1
FUTURE VALUE If you deposit $10,000 in a bank
account that pays 10% interest annually, how much will be in your
account after 5 years?
5-2
PRESENT VALUE What is the present value of a
security that will pay $5,000 in 20 years if securities of equal
risk pay 7% annually?
5-3
FINDING THE REQUIRED INTEREST RATE Your parents
will retire in 18 years. They currently have $250,000, and they
think they will need $1,000,000 at retirement. What annual...

Nalu and Kamaile take-out a mortgage in the amount of $260000 to
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Clearly, this is a TVM (time value of money) problem, so get
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c
n...

Find the following values:
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b. The future value of a lump sum of $6,000 invested today at 9
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c. The present value of $6,000 to be received in 7 years when
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d. The present value of $6,000 to be received in 7 years when
the...

This is literally what the questions was. I was confused by it.
Thus I am reaching out for clarification.
If you were to put $1,000 in the bank at 6% interest each year
for the next 10 years, how much would you have as an ending balance
in your account?
Present value of $1
Future value of $1
Present value of an annuity of $1
Future value of an annuity of $1

Investment Payback Calculation
Submit written responses to these questions.
What is the difference between simple interest and compound
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percent and one annual period of compounding? With an annual
interest rate of 16 percent and two semiannual periods of
compounding? With an annual interest rate of 16 percent and four
quarterly periods of compounding?
What is the relationship between the present value factor and
future value factor?...

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