Question

A1.If you deposit $12,000 in a bank account that pays 10% interest annually, how much will be in your account after 7 years?

A2. What is the present value of a security that will pay $10,000 in 20 years at an interest rate of 8%?

A3. Find the future value of the following ordinary annuities: a. $600 per year for 10 years at 10% b. $300 per year for 5 years at 5% c. $600 per year for 5 years at 0%

A4. Find the present value of the following ordinary annuities:

a. $600 per year for 10 years at 10%

b. $300 per year for 5 years at 5%

c. $600 per year for 5 years at 0%

URGENT: NEED ANSWER ASAP

PLEASE RESPOND WITH COPY AND PASTE, NOT ATTACHMENT USE ORIGINAL CONTENT NOT USED BEFORE ON CHEGG

PLEASE ANSWER THROUGHLY TO ALL ANSWER TO BEST ABILITES ORIGINAL SOURCE NEVER USED BEFORE!!!

Answer 1

1) FV = PV x (1 + r)^n = 12,000 x (1 + 10%)^7 = $23,384.61

2) PV = FV / (1 + r)^n = 10,000 / (1 + 8%)^20 = $2,145.48

3) Future Value can be calculated using FV function on a calculator

a. N = 10, PMT = 600, I/Y = 10%, PV = 0 => Compute FV = $9,562.45

b. N = 5, PMT = 300, I/Y = 5%, PV = 0 => Compute FV = $1,657.69

c. N = 5, PMT = 600, I/Y = 0%, PV = 0 => Compute FV = $3,000.00

4) Present Value can be calculated using PV funtion

a. N = 10, PMT = 600, I/Y = 10%, FV = 0 => Compute PV = $3,686.74

b. N = 5, PMT = 300, I/Y = 5%, FV = 0 => Compute PV = $1,298.84

c. N = 5, PMT = 600, I/Y = 0%, FV = 0 => Compute PV = $3,000.00