Question

nd the present value of $2,500 under each of the following rates and periods: (Use 365 days for calculation. If you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to the nearest penny.) a. 8.9 percent compounded monthly for five years. Present value $ b. 6.6 percent compounded quarterly for eight years. Present value $ c. 4.3 percent compounded daily for four years. Present value $ d. 5.7 percent compounded continuously for three years. Present value $ Click if you would like to Show Work for this question: Open Show Work Link to Text Question Attempts: 0 of 2 used Save for later Submit Answer

Answer #1

FV = $2500

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

**a. 8.9 percent compounded monthly for five
years.**

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

FV = $2,500, n = 5 * 12 months = 60 months, r = 8.9%/12 (monthly) = 0.7417%

PV = 2500/(1 + 0.7417%)^{60} = **$1,604.69**
--> Answer

**b. 6.6 percent compounded quarterly for eight
years.**

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

FV = $2,500, n = 8 * 4 quarters = 32 quarters, r = 6.6%/4 (quarterly) = 0.0165%

PV = 2500/(1 + 0.0165%)^{32} = **$1,480.82**
--> Answer

**c. 4.3 percent compounded daily for four
years.**

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

FV = $2,500, n = 4 * 365 days = 1460 days, r = 4.3%/365 (daily) = 0.0118%

PV = 2500/(1 + 0.0118%)^{1460} = **$2,104.97**
--> Answer

**d. 5.7 percent compounded continuously for three
years.**

PV = FV/e^{rt}

PV = 2500/e^{(5.7% * 3)}

PV = 2500/1.1865

**PV =
$2,107.05**--> Answer

Find the present value of $2,600 under each of the following
rates and periods: (Use 365 days for calculation. If
you solve this problem with algebra round intermediate calculations
to 4 decimal places, in all cases round your final answer to the
nearest penny.)
a. 8.9 percent compounded monthly for five
years.
Present value
$
b. 6.6 percent compounded quarterly for eight
years.
Present value
$
c. 4.3 percent compounded daily for four
years.
Present value
$
d. 5.7 percent...

Intermediate
1. Multiple compounding periods: Find the future value of an
investment of $2,500 made today for the following rates and
periods:
a.
6.25 percent compounded semiannually for 12 years
b.
7.63 percent compounded quarterly for 6 years
c.
8.9 percent compounded monthly for 10 years
d.
10 percent compounded daily for 3 years
2. Multiple compounding periods: Find the present value of
$3,500 under each of the following rates and periods.
a.
8.9% compounded monthly for five years.
b. ...

What is the present value of $2,500 per year for 10 years
discounted back to the present at 9 percent?
Q) The present value of $2,500 per year for 10 years discounted
back to the present at 9 percent is__?
Please show your work.

PLEASE ANSWER ALL, I am unable to post individually.
Dont not answer, and request to post the remaining separately.
Thank you !
2.Your aunt is planning to invest in a bank CD that will pay 7.0
percent interest semiannually. If she has $13,000 to invest, how
much will she have at the end of four years?
3.Lisa Anderson received a graduation present of $1,000 that she
is planning on investing in a mutual fund that earns 14.00 percent
each year....

Future Value for Various Compounding
Periods
Find the amount to which $575 will grow under each of the
following conditions. Do not round intermediate calculations. Round
your answers to the nearest cent.
12% compounded annually for 5 years.
$
12% compounded semiannually for 5 years.
$
12% compounded quarterly for 5 years.
$
12% compounded monthly for 5 years.
$

Future Value for Various Compounding
Periods
Find the amount to which $650 will grow under each of the
following conditions. Do not round intermediate calculations. Round
your answers to the nearest cent.
12% compounded annually for 5 years.
$
12% compounded semiannually for 5 years.
$
12% compounded quarterly for 5 years.
$
12% compounded monthly for 5 years.
$

Present Values:
Please provide the calculations in MS Excel for the present
value of an $7,000 goal in 7 years at 7% discounted on an annual,
semi-annual, quarterly, monthly, and daily basis to the nearest
penny.
Future Values:
Please provide the calculations in MS Excel for a future value
of an $7,000 investment today in 7 years at 7% compounded on an
annual, semi-annual, quarterly, monthly, and daily basis to the
nearest penny.
Present Value of an Annuity:
Please provide...

1)“For each of the following questions, determine the future
value of the given principals when compounded (a) annually, (b)
semiannually, (c) quarterly, and (d) continuously. 1 a)$1000 at 8
percent for 5 years.
b)“$10,000 at 9 percent for 8 years.”
2)“Determine the present value of $5000 to be paid in 8 years
time if current interest of 10 percent is compounded (a) annually,
(b) semiannually, (c) quarterly, and (d) continuously.”

The following investment requires table factors for periods
beyond the table. Create the new table factor rounded to five
places and calculate the present value. Round present value to the
nearest cent.
Click here for Table 11-2
Compound
Amount
Term of
Investment (years)
Nominal Rate
(%)
Interest
Compounded
New Table
Factor
Present
Value
$1,900
12
12
quarterly
$

Find the present value (principal) and the compound interest, as
indicated, for each of the following investments. (Hint: Subtract
the present value from the future value to find the compound
interest.) Use a calculator or Table 16-1 or Table 16-2 to find FVF
or PVF. Round answers to the nearest cent. show entire solution
please.
Future Value - Rate - Term - Present Value -
Compound Interest
2. $18,000 - 6% compounded quarterly - 5 years -
_____ -...

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