1 You have $X to invest. A certain investment will double your money in Y years.If the interest rate remains constant, how much will your investment be worth in Z years?X=Y=Z=The value in Z years is:3,500 $7 years12 yearsThe interest rate (to two decimals) for this investment is:Try AgainTry Again (Don't use rounded interest rate for this calc.)

Future value refers to the value of a current investment in the future. The concept of future value…

You have $X to invest. A certain investment will double your money in Y years. If the interest rate remains constant, how much will your investment be worth in Z years? X= The value in Z years is: Y= Z= 3,500 $ 7 years 12 years The interest rate (to two decimals) for this investment is: Try Again Try Again (Don't use rounded interest rate for this calc.)

You have $X to invest. A certain investment will double your money in Y years. If the interest rate remains constant, how much will your investment be worth in Z years? X= The value in Z years is: Y= Z= 3,500 $ 7 years 12 years The interest rate (to two decimals) for this investment is: Try Again Try Again (Don't use rounded interest rate for this calc.)

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

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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
can somebody help me？ thanks K means compound k times a year.
Consider a dollar amount of $750 today, along with a nominal interest rate of 15.00%. You are interested in calculating the future value of this amount after 5 years. For all future value calculations, enter -$750 (with the negative sign) for PV and 0 for PMT. When calculating the future value of $750, compounded annually for 5 years, you would enter a value of 15 for 1/Y. Using the keystrokes you just identified on your financial calculator, the future value of $750, compounded annually for 5 at the given nominal interest rate, yields a future value of approximately $1,508.52. When calculating the future value of $750, compounded semi-annually (twice per year) for 5 years, you would enter a value of 10 for N, a value of 7.50% for I/Y. 5 for N, a value of Using the keystrokes you just identified on your financial calculator, the future value of $750, compounded semi-annually for 5 at the given nominal interest rate, yields a future value of $1,545.77. When calculating the future value…
Now it's time to practice what you've learned. Consider a future value of $2,000, 9 years in the future. Assume that the nominal interest rate is 24.00%. Assume that there is semiannual compounding. Entering PMT=0 and a FV=$2,000 into a financial calculator, along with the appropriate periodic interest rate and value of N, yields a present value of approximately $ with semiannual compounding. Assume that there is quarterly compounding. Entering PMT=0 and a FV=$2,000 into a financial calculator, along with the appropriate periodic interest rate and value of N, yields a present value of approximately $ with quarterly compounding. Suppose now that the cash flow of $2,000 occurs only 1 year in the future. Assume that there is monthly compounding. Entering PMT=0 and a FV $2,000 into a financial calculator, along with the appropriate periodic interest rate and value of N, yields a present value of approximately $ with monthly compounding.
A).$4500 will be paid 6 years and 10 months now. Find present value of payment if interest is at rate j2 = 9%. Use the practical metho. B). An investment fund guarantees to double your money in five years. What rate of j2 is implied ? C). If money doubles at certain rate of interest compound monthly in six years. How long will it take to the same amount of money to triple in valuy ?
6. If the effective interest rate is i per period and you invest b dollars at time 0, then the value at time n is b(1 + i)”. For example, if at time 0 you invest $100 at an effective interest rate of 6% per year, then the value at time 1 is $100(1+0.06) = $106. dollars. At time 2, the value will be $100 (1 + 0.06)² = $112.36. Similarly, the present value (value at time 0) of $100 received 2 years from now would be $100(1+0.06)-²≈ $88.99. Sometimes it's convenient to define d = 1/(1 + i) so that we would have $100(1+i)n = $100d". If the interest rate per year is i compounded semiannually, then the effective annual interest rate is (¹ + 2)²³ - 1₁ 1. For example, if the interest rate is 6% per year compounded semiannually, the effective annual interest rate is 1 + .06 2 2 - 1 ≈ 6.09%. If the interest rate per year is i compounded quarterly, then the effective annual interest rate is 4 (¹ + 4) * - 1 1. (a) If the interest rate is 6% per year compounded quarterly, what is the effective…
4. If you receive $116 each month for 28 years and the discount rate is 0.08, what is the present value? (show the process and can use financial calculator)
2. If you receive $99 each quarter for 17 years and the discount rate is 0.05, what is the future value? (show the process and can use financial calculator)
The force of interest is known to be δ(t)=k√t where t is in years. a) Determine k such that money invested at t=0 will triple in 9 years.b) How long will it take for money invested at t=1 to triple?c) Find the equivalent constant rate convertible semi-annually that will cause money to triple in the first 9 years.

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