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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityHow much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%
- Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?the present value of the future value of $8,600 at 9 1/2% simple interest for 5 years. (Round your answer to the nearest cent.)P = $ ?Find the present value that will generate the future value of $3,373 at 11 1/4% compounded quarterly for 5 years. (Give your answer to the nearest cent.)P = $
- What are the future value and the interest earned if $2800 is invested for 3 years at 8% compounded quarterly? (Round your answers to the nearest cent.) future value $ interest earned $If you invest 5000 dollars today at a compound interest rate of 10 percent, compounded semi-annually, what will beits future value after 5 yearsSelect one:a. 8,052 dollars. b. 8,000 dollars.c. 8,144 dollars.d. 2,500 dollars.e. 7,500 dollars.Complete the following using compound future value. (Round your answers to the nearest cent.) Time Principal Rate Compounded Amount Interest 15 years $16,300 2 % ? Annually ? Compounded ______________ ? Interest _________________ ?
- Use the following 10% present value factors: N 1: 0.9091 N = 2: 0.8264 N= 3: 0.7513 Assume you wish to receive $1,000 at the end of two years. Assuming an interest rate of 10% what amount would you need to deposit todayin order to receive the S1, 000? Round to the nearest penny if necessary.Tommy John is going to receive $1,000,000 in three years. The current market rate of interest is 10%. Using the present value of $1 table in Exhibit 8 (page 695), determine the present value of this amount compounded annually. Why is the present value of the amount less than $$1,000,00D to be received in the future?Find the present value of the future value of $8,600 at 9 1/2% simple interest for 5 years. (Round your answer to the nearest cent.)P = $
