7. Future values (S2.1) Compute the future value of a $100 investment for the following combinations of rates and times. a. r= 6%, t= 10 years. b. r= 6%, t = 20 years. c. r = 4%, t = 10 years. d. r= 4%, t = 20 years.

7. Future values (S2.1) Compute the future value of a $100 investment for the following combinations of rates and times. a. r= 6%, t= 10 years. b. r= 6%, t = 20 years. c. r = 4%, t = 10 years. d. r= 4%, t = 20 years.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: An investment is offered whereby £1000 is invested immediately, £2000 is invested in exactly…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If annuity A has 30 payments of $500 at an interest rate of 10% and annuity B has 30 payments of…

A: Present value is the discounted value or today's value of a set of cash flows that will occur in the…

Q: Case A Case B (2) In Table 2 (future value of an annuity of 1): Case A Case B Case A Case B Annual…

A: The Time Value of Money (TVM) is a fundamental financial concept that underscores the idea that a…

Q: which of the following investments that pay will $5000 in 12 years have a higher price today?

A: Present Value: It is the present worth of the future amount and the present value is computed by…

Q: Approximately, what is the value of (P) if F=114120, n=8 years, and i= 7% per year? O a. 79703 b.…

A: Present value is the current value of certain amount of future money at a required rate of return or…

Q: Determine the present value P that must be invested to have the future value A at simple interest…

A: To calculate the present value we will use the below formula A = P+(P*r*t) Where A - Future value…

Q: Determine the present value, P, you must invest to have the future value, A, at simple interest rate…

A: calculation of present value P are as follows

Q: 5. Calculate the Present worth (where Ptotal= PA+PG) if G (arithmetic gradient) =35, n=8 years,…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: For each of the following cases, indicate (a) to what interest rate columns and (b) what number of…

A: The time value of money is a key financial concept that indicates that a dollar amount in possession…

Q: Find the present value PV of the given future value. (Round your answer to the nearest cent.) Future…

A: Present Value = Future Value / (1+rt) Where, r = 9+ 1/2 % or 9.50% or 0.095 t = 6 Present Value =…

Q: answer if its true or false Based on the following information calculate the value at time 2 of the…

A: In the given question we are given the future value equal to 108 at time 2 and we need to tell…

Q: Determine the present value P that must be invested to have the future value A at simple interest…

A: The PV of an investment refers to the collective worth of the future cash flows after they have been…

Q: Which net present value, payback period, and interal rate of return is the best to choose. (A).…

A: Net Present Value (NPV): Imagine NPV as a scorecard that takes into account the temporal value of…

Q: Please help me in calculating the Return on Investment and Break-Even Point, and please help me…

A: The amount of net income earned on the basis of capital employed is known as the return on…

Q: Find the future value

A: Future value = Present value(1 + Rate)^Time where, Rate = 0.03 / 2 = 0.015 or 1.5% Time = 5 * 2 =…

Q: Determine the present value P you must invest to have the future value A at simple interest rate r…

A: P = A/ (1+rt) Where, A = Future value P = Present value r =rate of interest t = time

Q: find (a) the future value after 9 years, (b) the effective rate, and (c) the time to reach $10,000.…

A: Future value is the value of the current money or assets in future at a specific date. The value of…

Q: Approximately, what is the value of PG present worth of arithmetic gradient) if G=170, n=4 years,…

A: The aggregate present worth of the series of the arithmetic gradient is computed using the present…

Q: Compute the simple interest INT for the specified length of time and the future value FV at the end…

A: Simple interest is the formula for determining interest with respect to the principal amount, time,…

Q: Determine the present value P you must invest to have the future value A at simple interest rate r…

A: Information Provided: Amount = $7000.00 Rate = 15% T = 0.75 (39 weeks / 52 weeks)

Q: Bill Padley expects to invest $24,000 for 9 years, after which he wants to receive $28,682.40. What…

A: Present Value = pv = $24,000.00Time = t = 9 yearsFuture Value = fv = $28,682.40

Q: Using the formula for simple interest and the given values, find I. P= $300; r= 5%; t = 7 years; I=…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: ress the future value A(t) of 1,000 in terms of

A: The future value of money includes the amount that is being deposited and amount of interest…

Q: 4.) FEU has been bought by an individual. It is to be paid 4% compounded semi-annually, eight times…

A: Future value of deposit include the amount deposited and also compounding interest accumulated over…

Q: If you invest $12,000.00 today, how much will you have in the future under each of the following…

A: Time value of money is a financial concept which is used to analyze various investments and…

Q: 3.12 Suppose the spot rates of interest for investment horizons of 1 to 5 years are 4%, and for 6…

A: In the given question we require to Compute the future value of the annuity-immediate at the end of…

Q: For question 1 parts a,b,c below, show all work that justifies your results. You will show how to…

A: Present value (PV) is a financial concept that allows us to determine the current worth of future…

Q: Approximately, what is the value of (P) if A=620, n=21 years, and i= 21.5% per year?

A: Given information: Annuity payment (A) is 620 Number of years is 21 Interest rate is 21.5%

Q: Find the total value TV of the given income stream and also find its future value FV (at the end of…

A: Future Value (FV)The future value (FV) is the value of the income stream at the end of the interval…

Q: 1. This problem relates to Future Value, and Future income streams. Assume continuous compounding of…

A: PRESENT VALUE Present value, also known as present discounted value, is the value of an expected…

Q: ok Assume the returns from holding an asset are normally distributed. Also assume the average annual…

A: Using NORMDIST to Analyze Asset ReturnsWe can use the NORMDIST function in Excel to analyze the…

Q: Suppose that the allocation of a natural resource during three years results in a stream of total…

A: c) Computation:

Q: Suppose you makes a $1,000 initial investment today, a $4,000 additional investment at the end of…

A: Money-weighted index is the internal rate of return of the investment made. The IRR is the rate at…

Q: Determine the present value P that must be invested to have the future value A at simple interest…

A: Given: Future value (A) =$5000.00 Rate (r) = 15% = 0.15 Time t=312=0.25

Q: 16. (a) An investment secures an income of i at the end of each year for n years; plus a capital sum…

A: The present value of an investment is calculated by multiplying the instalment deposits with the…

Q: 2. Which is the better investment for 10 years: investing $1100 at 7% APR or $1650 at 3.5% APR? Both…

A: Future value of Amount Invested at r for n years = Amount*(1+r)^n For a. Amount = $1100 Years(n) =10…

Q: a. 11555 p. 8623 C. 7158 1. 10348

A: Present value can be calculated using interest rate and period required.

Q: An investment will pay $100 at the end of each of the next 3 yrs, $200 at the end of yr 4, $300 at…

A: Given information: Cash inflow for next three years is $100 Cash flow for year 4 is $200 Cash flow…

Q: Compute the following: a. The average rate of return, giving effect to straight-line depreciation on…

A: Solution:- Given, Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost =…

Q: 5. In an investment, I have a full payback with an amount of P500,000.00 after 20.9123 years. If we…

A: 5. To calculate the number of times first we need to calculate the present value then, divide the…

Q: Approximately, what is the value of PG (present worth of arithmetic gradient) if G=185, n=7 years,…

A: gradient = 185 time period = 5 interest rate = 7.5% below is the given formula to calculate present…

Question

**7. Future values (S2.1)** Compute the future value of a $100 investment for the following combinations of rates and times.

a. $ r = 6\% $, $ t = 10 $ years.

b. $ r = 6\% $, $ t = 20 $ years.

c. $ r = 4\% $, $ t = 10 $ years.

d. $ r = 4\% $, $ t = 20 $ years.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Computation:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 8%. Year 1 $100, Year 2 $200, Year 3 $400 Year Payment 1 100 2 200 3 400 Rate 8% To find the PV, use the NPV function: Pv= $581.59 Year Payment x (1+ I)^(N- t) = FV 1 100 2 200 3 400
1. Ati= 10% per year and a loan amount of $10,000. If N = 20, what are the payments and future value? Solve this problem using %3! a. Excel b. Formula
j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 10%. Payment $100 $300 $500 Year 1 2 3 Round your answers to the nearest cent. PV of investment: $ FV of investment: $
Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A = $14,000, r = 7.5%, t = 8 years
4. The future value of an investment after 5 years was $12500. If the initial investment had been $8000 what was the annual rate of interest earned on this investment had it been compounded annually? N = 1% = PV = PMT = FV = P/Y = C/Y =
Find the present value PV of the given future value. (Round your answer to the nearest cent.) Future value $8,100 at 9 1/2 % simple interest for six years. PV = $ Find the present value PV of the given future value. (Round your answer to the nearest cent.) Future value $1,119 at 3 5/8 % simple interest for 518 days. PV= $ PV = $ % simple interest for 518 days
Find the future value FV of the given present value. (Round your answer to the nearest cent.) Present value of $12,410 at 5 7 8 % for 670 days
Oriental Corporation has gathered the following data on a proposed investment project: Investment in depreciable equipment Annual net cash flows Life of the equipment $600,000 $ 64,000 15 years Salvage value Discount rate 6% The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. The payback period for the investment would be: (Round your answer to 1 decimal place.)
For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the future value factor. (1) In Table 1 (future value of 1): Number of Annual Rate Years Invested Compounded Case A 5% 5 Annually Case B 8% 6 Semiannually Case A Case B . (a) % % (2) In Table 2 (future value of an annuity of 1): Annual Rate Number of Years Invested Compounded Case A 6% 9 Annually Case B 8% 5 Semiannually Case A Case B (b) periods periods (a) (b) % periods % periods
P=P1,000 r= 5% t= 10 years m=4 What would be the future value of the ordinary annuity of the given data?
answer if its true or false 1) Based on the following information calculate the value at time 1 of the investment made at time zero. This future value is between 103 and 105. time discount investment (years) rate 6% 100 1
4. Find the future worth in year 10 of an investment that starts at P8000 in year 1. The interest rate is 10% per year.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS