Question

Kevin is going to give you $400.50 in 3 years. Robert is going to give uou...

Kevin is going to give you $400.50 in 3 years. Robert is going to give uou $600.08 in 5 years. Assuming an interest rate of 5, how much will it all be worth in 10 years?

Homework Answers

Answer #1
Particulars 3 years 5 years Total
Receipt $       400.50 $       600.08
Years to maturity                      7                      5
Rate of interest 5% 5%
× future value factor         1.40710         1.27628
Future value $       563.54 $       765.87 $ 1,329.41

Answer is $1,329.41

Please rate.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the value today of $500 received in 3 years if the going rate of...
What is the value today of $500 received in 3 years if the going rate of interest is 10% per year? An individual has $3,000 today. What will that be worth in 7 years if the going rate of interest is 4% per year? What is the present value of $250 received at the end of each year for the next 8 years if the interest rate is 4.5% per year? I need a break down of how to solve...
You are going to buy a car that costs $28,000. You have a trade-in valued at...
You are going to buy a car that costs $28,000. You have a trade-in valued at $2000 and will finance the remaining cost of the car, you will take out a 4 year loan with an interest rate of 4.36%. What will your monthly payment be? (Enter only numbers and decimals in your response. Round to 2 decimal places.) You are going to buy a car that costs $28,000. You have a trade-in valued at $2000 and will finance the...
You plan on going to school for 2 years. This venture will cost $29,116 each year...
You plan on going to school for 2 years. This venture will cost $29,116 each year you are in school. If the interest rate is 2%, how much money do you need today to fund this venture? Assuming that you start today and pay tuition by the end of each year. Round your answer to 2 decimal places.
Question 2 2a) Suppose a risk-free bond promises to pay $2,249.73 in 4 years.  If the going...
Question 2 2a) Suppose a risk-free bond promises to pay $2,249.73 in 4 years.  If the going risk-free interest rate is 3.5%, how much is the bond worth today?   Nper Rate PMT FV PV 2b) Suppose you can buy a U.S. Treasury bond which makes no payments until the bond matures 10 years from now, at which time it will pay you $1,000. What interest rate would you earn if you bought this bond for $585.43?   Nper PMT PV FV Rate...
Shayla is going to deposit $6,000 at the end of each year for 18 years into...
Shayla is going to deposit $6,000 at the end of each year for 18 years into RRSP. Shayla will make no contributions but she will let the funds stay in RRSP for another 18years earning interest. The compounded annual interest rate is 6%. how much Shyla's RRSP be worth at the end of 40 years?
1.   You have just received some great news from your parents… they are going to give...
1.   You have just received some great news from your parents… they are going to give your inheritance early, starting now! But, they’re going to force to you make a decision on how you want it. At the end of the day, they are going to give you a total of $500,000. But you have to pick one of the two options for disbursement: Option A: You get it in three lump sum payments as follows: •   You receive $100,000...
How much will $8000 invested at 3 percent interest be worth in three years if it...
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?
3(a). You want to retire 50 years from now, and you want access to ten million...
3(a). You want to retire 50 years from now, and you want access to ten million dollars ($10,000,000) when you do. You decide to put some money towards buying a certificate of deposit that’ll be worth 10 mil in 50 years. The CD has an annual interest rate of 8%, and it compounds quarterly. How much do you have to put into this deposit?3 (b). Let’s say you put an equal amount of money into a simple interest account with...
You buy a car for $30,000 and are going to finance it over 6 years. The...
You buy a car for $30,000 and are going to finance it over 6 years. The dealership make you two offers. You can either have 0% interest for the first 3 years and a nominal annual rate of 6% compounded monthly for the last 3 years or you can have a nominal annual rate of 3% compounded monthly for all 6 years. In either case you are expected to make monthly payments at the end of each month for the...
1.You are going to deposit $2,800 in an account that pays .54 percent interest compounded quarterly....
1.You are going to deposit $2,800 in an account that pays .54 percent interest compounded quarterly. How much will you have in 8 years? 2.You have $5,000 and will invest the money at an interest rate of .21 percent per month until the account is worth $9,800. How many years do you have to wait until you reach your target account value? 3.You have just started a new job and plan to save $4,500 per year for 40 years until...