Question

Calculate the future value of the following amounts deposited today if they have an annual compound interest as shown below:

Situation | Amount deposited | Interest rate | Periods of deposited ( pear years) | Frequency |

A | $10,200 | 4.5% | 12 | Bimonthly |

B | $14,500 | 6.4% | 8 | Semiannual |

C | $10,000 | 8.3% | 7 | Quarterly |

D | $25,000 | 11.8% | 9 | Annual |

E | $26,000 | 10.7% | 20 | Quarterly |

F | $32,000 | 9.4% | 14 | Semiannual |

Answer #1

Deposit | Rate | Period | Frequency | FV | |

A | 10,200 | 4.50% | 12 | 6 | 17,468 |

B | 14,500 | 6.40% | 8 | 2 | 24,002 |

C | 10,000 | 8.30% | 7 | 4 | 17,772 |

D | 25,000 | 11.80% | 9 | 1 | 68,221 |

E | 26,000 | 10.70% | 20 | 4 | 214,857 |

F | 32,000 | 9.40% | 14 | 2 | 115,786 |

FV = PV x (1 + r/m)^(n x m)

where, PV - Deposit, r - rate, m - frequency, n - period.

Changing compounding frequency???Using? annual,
semiannual, and quarterly compounding ?periods, (1) calculate the
future value if???$7000 is deposited initially at 9?% annual
interest for 4 years and? (2) determine the effective annual
rate?????(EAR?).
Annual Compounding:
Semiannual Compounding:
Quarterly Compounding:

Using annual, semiannual, and quarterly compounding periods,
(1) calculate the future value if $5000 is deposited initially,
and (2) determine the effective annual rate (EAR).
a. At 12% annual interest for 5 years.
b. At 16% annual interest for 6 years.
c. At 20% annual interest for 10 years.

5) ?(Compound interest
with? non-annual
periods?) You just received a
bonus of ?$5,000.
a. Calculate the future value of ?$5,000?,
given that it will be held in the bank for 9 years and earn an
annual interest rate of 7 percent. ?(Round to the nearest?
cent.)
b. Recalculate part ?(a?)
using a compounding period that is? (1) semiannual and? (2)
bimonthly.
c. Recalculate parts ?(a?) and
?(b?) using an annual interest rate of 14
percent.
d. Recalculate part ?(a?)
using...

1.)Calculate the annual compound interest rate if you invest
$100 today and the value grows to $120 two years from now. Two
decimals, whole percent (e.g. 5.23).
2.)How many years will it take $100 to grow to $133.82, if
annual compound interest is 6%? # no decimals
3.)Calculate the future value of $100 invested today for 3
years, where the nominal annual interest rate of 4% is compounded
quarterly? To two decimals.
4.)Your friend borrowed $5,000 three years ago and...

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