Question

1.

How much must be invested today to have $1,000 in two years if the interest rate is 5%?

Group of answer choices

$909.09

$900.00

$907.00

$950.00

2.

Find the present value of $100 to be received at the end of two years if the discount rate is 12% compounded monthly.

Group of answer choices

$66.50

$78.76

$68.80

$91.80

$79.75

Answer #1

Answer 1 :-

Present Value = Future Value / ( 1 + rate )n

where

Future value = amount to have after two year ( 1000 )

Rate = rate per year ( 5% )

N = number of period ( 2 )

Present Value = Future value / ( 1+ rate )n

= 1000 / (1.05)2

**= $ 907**

Answer 2 :-

Present Value = Future Value / ( 1 + rate )n

where

Future value = amount to be received after 2 year ( 100 )

Rate = rate per month ( 12 / 12 = 1% ) as it is monthly compounded

N = number of period ( 12 * 2 = 24 ) as it is monthly compounded

Present Value = Future Value / ( 1 + rate )n

= 100 / ( 1.01 )24

= **$ 78.76**

If you invested $1 today an interest rate of 7%, and the
interest compounded annually, how much would your dollar be worth
in 5 years? Round your answer to two decimal places. show work with
excel use control ~

How much will $100 grow to if invested at a continuously
compounded interest rate of 12% for 7 years? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)
Future Value =
How much will $100 grow to if invested at a continuously
compounded interest rate of 7% for 12 years? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)
Future Value =

A.Calculate the present value of an annuity of $5,000 received
annually that begins today and continues for 10 years, assuming a
discount rate of 9%.
B. Joan invested $5,000 in an interest-bearing account earning
an 8% annual rate of interest compounded monthly. How much will the
account be worth at the end of 5 years, assuming all interest is
reinvested at the 8% rate?
C. Calculate the present value of an ordinary annuity of $5,000
received annually for 10 years,...

1). How much should be invested at 7% to have $1300 at the end
of 2.5 years? (Round your final answer to two decimal places.)
2).Find the annual nominal rate for the effective rate given
below.
Effective rate = 4.902%. Annual rate is compounded quarterly.
(Round your final answer to one decimal place.)
3). Consider the following.
$38,000 is invested at 5.5% compounded annually for 7 years.
(Round your final answers to two decimal places.)
a. Find the final amount...

7. If Paul invested $10,000 today and also added $100 every
month, how much money would he have in his account at the end if
the interest rate on his investment is 8% compounded monthly?
A. $23,037
B. $115,345
C. $11,717
D. $40,491

How much will $100 grow to if invested at a continuously
compounded interest rate of 7.5% for 7 years? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)
How much will $100 grow to if invested at a continuously
compounded interest rate of 7% for 7.5 years? (Do
not round intermediate calculation

You know you will need $25,000 at the end of 5 years. How much
would you have to deposit annually, starting at the end of the
first year, into an account earning 10% to accumulate the needed
amount?
Group of answer choices
$3,980
$4,095
$4,435
$4,973
$5,886
17.
What is the amount of the equal annual installments for a
10-year, $10,000 loan with a 20% rate of interest?
Group of answer choices
$2,225
$3,863
$2,385
$1,917
$2,000
18.
What amount...

How much will $100 grow to if invested at a continuously
compounded interest rate of 8.5% for 9 years? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)
How much will $100 grow to if invested at a continuously
compounded interest rate of 9% for 8.5 years? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)

1.
What is the rate of return on an investment if you lend $1,000
and are repaid $1,254.70 two years later?
Group of answer choices
12%
25%
6%
18%
4%
2.
At an effective interest rate of 12%, a single sum invested
today will double itself in approximately:
Group of answer choices
8 years.
12 years.
6 years.
insufficient data to determine answer.

How much will $8000 invested at 3 percent interest be worth in
three years if it is compounded annually? Quarterly? How much if
the interest rate is 5 percent?

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