Question

What is the future value?

Juan Garza invested $105,000 4 years ago at 16 percent,
compounded quarterly. How much has he accumulated? Use Appendix A
for an approximate answer but calculate your final answer using the
formula and financial calculator methods. **(Do not round
intermediate calculations. Round your final answer to 2 decimal
places.)
**

Answer #1

Future value using formula:

Rate = 0.16 / 4 = 0.04 ( since it is compounded quarterly, we divide by 4)

n = 4 * 4 = 16 ( since it is compounded quarterly, we multiply by 4)

FV = PV ( 1 + r)^{n}

FV = 105,000 ( 1 + 0.04)^{16}

FV = 105,000 ( 1.872981 )

FV = $196,663

Future value using financial calculator:

First set the calculator to 4 compounding periods... to do that click 2ND I/Y = 4

Keys to use in a financial calculator: 2ND I/Y = 4, PV = -105,000, I/Y = 16, N = 16, CPT FV)

You get $196,663.03.

Determine the amount of money in a savings account at the end of
3 years, given an initial deposit of $5,000 and a 16 percent annual
interest rate when interest is compounded: Use Appendix A for an
approximate answer, but calculate your final answer using the
formula and financial calculator methods. (Do not round
intermediate calculations. Round your final answers to 2 decimal
places.)
future value
a
annually
?
b
semiannually
?
c
quarterly
?

Determine the amount of money in a savings account at the end of
10 years, given an initial deposit of $10,000 and an annual
interest rate of 16 percent when interest is compounded: Use
Appendix A for an approximate answer, but calculate your final
answer using the formula and financial calculator methods Future
value a. Annually b. Semiannually c. Quarterly

a. What is the future value in six years of
$1,400 invested in an account with an annual percentage rate of 9
percent, compounded annually? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Future value $
b. What is the future value in six years of $1,400
invested in an account with an annual percentage rate of 9 percent,
compounded semiannually? (Do not round intermediate
calculations and round your answer to 2 decimal...

Beverly Hills started a paper route on January 1. Every three
months, she deposits $1,000 in her bank account, which earns 8
percent annually but is compounded quarterly. Four years later, she
used the entire balance in her bank account to invest in an
investment at 12 percent annually. How much will she have after
three more years? Use Appendix A and Appendix C for an approximate
answer, but calculate your final answer using the formula and
financial calculator methods....

Exodus Limousine Company has $1,000 par value bonds outstanding
at 17 percent interest. The bonds will mature in 50 years. Use
Appendix B and Appendix D for an approximate answer but calculate
your final answer using the formula and financial calculator
methods.
Compute the current price of the bonds if the percent yield to
maturity is: (Do not round intermediate calculations. Round
your final answers to 2 decimal places. Assume interest payments
are annual.)
Exodus Limousine Company has $1,000...

A $1,000 par value bond was issued five years ago at a 12
percent coupon rate. It currently has 25 years remaining to
maturity. Interest rates on similar debt obligations are now 14
percent. Use Appendix B and Appendix D for an approximate answer
but calculate your final answer using the formula and financial
calculator methods.
a. Compute the current price of the bond using
an assumption of semiannual payments. (Do not round
intermediate calculations and round your answer to...

a. What is the future value in five years of
$1,200 invested in an account with an annual percentage rate of 10
percent, compounded annually? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Future value $ Not attempted
b. What is the future value in five years of
$1,200 invested in an account with an annual percentage rate of 10
percent, compounded semiannually? (Do not round
intermediate calculations and round your answer to 2...

If you invest $17,000 today, how much will you have in each of
the following instances? Use Appendix A as an approximate answer,
but calculate your final answer using the formula and financial
calculator methods.
a. In 6 years at 7 percent? (Do not
round intermediate calculations. Round your final answer to 2
decimal places.) Future Value=?
b. In 20 years at 9 percent? (Do not
round intermediate calculations. Round your final answer to 2
decimal places.) Future Value=?
c....

2) If you invest $8,900 per period for the following number of
periods, how much would you have: Use Appendix C for an approximate
answer, but calculate your final answer using the formula and
financial calculator methods.
a. In 7 years at 9 percent? (Do not round intermediate
calculations. Round your final answer to 2 decimal places.)
Future value $ _________
b. In 25 years at 9 percent? (Do not round intermediate
calculations. Round your final answer to 2 decimal...

If you invest $17,500 today, how much will you have in each of
the following instances? Use Appendix A as an approximate answer,
but calculate your final answer using the formula and financial
calculator methods.
a. In 7 years at 8 percent? (Do not round
intermediate calculations. Round your final answer to 2 decimal
places.)
b. In 18 years at 7 percent? (Do not
round intermediate calculations. Round your final answer to 2
decimal places.)
c. In 25...

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