Question

What is the total future value of the following cash flows:

a.) $10,000 invested today for 20 years at an annual rate of 4.7%

b.) $25,000 invested for 6 years at 6%

c.) $50,000 invested for 15 years at 2.8%

d.) Which of the above is the best investment? Why?

Answer #1

a.Present value= $10,000

Time= 20 years

Interest rate= 4.7%

The future value is calculated with a financial calculator

The below has to be entered in a financial calculator:

PV= -10,000; N= 20; I/Y= 4.7

Press CPT and FV to calculate the future value

The future value is
**$25,057.26.**

b.Present value= $20,000

Time= 6 years

Interest rate= 6%

The future value is calculated with the help of a financial calculator

The below has to be entered in a financial calculator

PV= -20,000; N= 6; I/Y= 6

Press CPT and FV to calculate the future value

The future value is
**$28,370.38.**

c.Present value= $50,000

Time= 15 years

Interest rate= 2.8%

The future value is calculated with a financial calculator

The below has to be entered in a financial calculator:

PV= -50,000; N= 15; I/Y= 2.8

Press CPT and FV to calculate the future value.

The future value is
**$75,660.07.**

What is the total future value in 40 years of the following cash
flows: $10,000 invested today, $25,000 invested in 6 years and 7
months, and $50,000 invested in 15 and 2 months? Use a discount
rate .9% monthly.

What is the total future value in 40 years of the following cash
flows: $10,000 invested today, $25,000 invested in 6 years and 7
months, and $50,000 invested in 15 and 2 months? Use a discount
rate .9% monthly.

What is the total future value in 35 years of the following cash
flows: $11,000 invested today, $30,000 invested in 6 years and 7
months, and $45,000 invested in 15 years and 2 months? Use a
discount rate of .8% monthly.
Please show me how I would set this up on excel...What equations
would be used to solve each. Thank you!

a. What is the future value of $10,000 invested for 15 years at
9%?
b. What is th future value of $10,000 invested each year for 15
years at 9%?
c. What amount must be invested today to pay out the following
if 8% can be earned on investments?
-$10,000 in 10 years
-$10,000 in each of the next 10 years

What amount would have to be invested today for the future
value to be $10,000 after 20 years if the rate of return is:
a. 5% compounded quarterly? b. 7% compounded quarterly? c. 9%
compounded quarterly

Find the future value of the following cash flows if the
discount rate is 5.875%: Years 1 - 7 15,000 Years 8– 12 25,000
Years 13 - 20 4300

What is the future value of $10,000 after 15 years when
investing 4%?
What is the future value in the preceding problem if the
interest is compounded monthly?
What is the future value after 22 years of year-end deposits of
$50,000 earning 3%?
What is the future value in the preceding problem if deposits
are year-beginning?
What is the most you should pay today for a piece of land which
will be worth $500,000 in 4 years if you want...

Find the following values:
a. The future value of a lump sum of $6,000 invested today at 9
percent, annual compounding for 7 years.
b. The future value of a lump sum of $6,000 invested today at 9
percent, quarterly compounding for 7 years.
c. The present value of $6,000 to be received in 7 years when
the opportunity cost (discount rate) is 9%, annual compounding.
d. The present value of $6,000 to be received in 7 years when
the...

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

Future value is the value today of money at a future point in
time. For example take a $10 investment that would grow to $100 in
five years. The future value of that $10 investment is $100. It is
the value today of money tomorrow. It is calculated based on the
amount of money, the amount of time (in years) into the future and
a given monthly interest rate. Create a method with three
parameters that computes future investment using...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 3 minutes ago

asked 4 minutes ago

asked 5 minutes ago

asked 23 minutes ago

asked 29 minutes ago

asked 35 minutes ago

asked 36 minutes ago

asked 39 minutes ago

asked 58 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago