Foundations of Finance (9th Edition) (Pearson Series in Finance)
9th Edition
ISBN: 9780134083285
Author: Arthur J. Keown, John D. Martin, J. William Petty
Publisher: PEARSON
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Question
Chapter 5, Problem 1SP
Summary Introduction
To determine: The
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Students have asked these similar questions
(Compound
interest)
To what amount will the following investments accumulate?
a.
$4,900
invested for
9
years at
10
percent compounded annually.
b.
$8,100
invested for
6
years at
9
percent compounded annually.
c.
$750
invested for
11
years at
13
percent compounded annually.
d.
$21,000
invested for
5
years at
4
percent compounded annually.
a. To what amount will
$4,900
invested for
9
years at
10
percent compounded annually accumulate?
$nothing
(Round to the nearest cent.)
(Compound
interest)
To what amount will the following investments accumulate?
a.
$5,000 invested for 10 years at 10 percent compounded annually
b.
$8,000 invested for 7 years at 8 percent compounded annually
c.
$775 invested for 12 years at 12 percent compounded annually
d.
$21,000 invested for 5 years at 5 percent compounded annually
5-2. (Compound interest) To what amount will the following investments accumulate?
a. $6,000 invested for 12 years at 12 percent compounded annually
b. $7,500 invested for 8 years at 8 percent compounded annually
c. $6,400 invested for 10 years at 10 percent compounded annually
d. $22,000 invested for 6 years at 6 percent compounded annually
5-3. (Compound value solving for n) How many years will the following take?
a. $550 to grow to $1,049.50 if invested at 6 percent compounded annually
b. $37 to grow to $63.87 if invested at 9 percent compounded annually
c. $110 to grow to $398.60 if invested at 18 percent compounded annually
d. $56 to grow to $89.66 if invested at 3 percent compounded annually
Chapter 5 Solutions
Foundations of Finance (9th Edition) (Pearson Series in Finance)
Ch. 5 - Prob. 1RQCh. 5 - The processes of discounting and compounding are...Ch. 5 - Prob. 3RQCh. 5 - Prob. 4RQCh. 5 - Prob. 5RQCh. 5 - Prob. 1SPCh. 5 - Prob. 2SPCh. 5 - Prob. 3SPCh. 5 - Prob. 4SPCh. 5 - (Compound value) Stanford Simmons, who recently...
Ch. 5 - (Future value) Sarah Wiggum would like to make a...Ch. 5 - Prob. 7SPCh. 5 - Prob. 8SPCh. 5 - Prob. 9SPCh. 5 - Prob. 10SPCh. 5 - Prob. 11SPCh. 5 - Prob. 13SPCh. 5 - Prob. 14SPCh. 5 - Prob. 15SPCh. 5 - Prob. 16SPCh. 5 - Prob. 17SPCh. 5 - Prob. 18SPCh. 5 - Prob. 19SPCh. 5 - Prob. 20SPCh. 5 - Prob. 21SPCh. 5 - Prob. 22SPCh. 5 - Prob. 23SPCh. 5 - (Solving for PMT of an annuity) To pay for your...Ch. 5 - Prob. 25SPCh. 5 - Prob. 26SPCh. 5 - (Loan amortization) On December 31, Beth Klemkosky...Ch. 5 - (Solving for r of an annuity) You lend a friend...Ch. 5 - Prob. 29SPCh. 5 - (Compound annuity) You plan on buying some...Ch. 5 - (Loan amortization) On December 31, Son-Nan Chen...Ch. 5 - (Loan amortization) To buy a new house you must...Ch. 5 - Prob. 33SPCh. 5 - Prob. 34SPCh. 5 - Prob. 35SPCh. 5 - Prob. 36SPCh. 5 - Prob. 37SPCh. 5 - (Compound interest uith nonannnal periods) a....Ch. 5 - (Compound interest with nonannual periods) After...Ch. 5 - Prob. 40SPCh. 5 - (Spreadsheet problem) To buy a new house you take...Ch. 5 - (Nonannual compounding using a calculator) Jesse...Ch. 5 - (Nonannual compounding using a calculator)...Ch. 5 - (Nonannual compounding using a calculator) Fords...Ch. 5 - Prob. 45SPCh. 5 - (Nonannual compounding using a calculator) Dennis...Ch. 5 - Prob. 47SPCh. 5 - (Calculating the effective annual rate) Youve just...Ch. 5 - Prob. 49SPCh. 5 - Prob. 50SPCh. 5 - (Present value) The Kumar Corporation is planning...Ch. 5 - (Perpetuities) What is the present value of the...Ch. 5 - (Complex present value) How much do you have to...Ch. 5 - (Complex present value) You would like to have...Ch. 5 - Prob. 55SPCh. 5 - Prob. 56SPCh. 5 - Prob. 57SPCh. 5 - Prob. 58SPCh. 5 - (Present value of a complex stream) Don Draper has...Ch. 5 - (Present value of a complex stream) Don Draper has...Ch. 5 - (Complex stream of cash flows) Roger Sterling has...Ch. 5 - (Future and present value using a calculator) In...Ch. 5 - Prob. 1MCCh. 5 - Prob. 2MCCh. 5 - Prob. 3MCCh. 5 - Prob. 4MCCh. 5 - Prob. 5MCCh. 5 - Prob. 6MCCh. 5 - Prob. 7MCCh. 5 - Prob. 8MCCh. 5 - Prob. 9MCCh. 5 - Prob. 10MCCh. 5 - Prob. 11MC
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Similar questions
- What will be the amount accumulated by each of the following present investments? a. $3,000 invested for 7 years at 14% compounded annually. b. $1,600 invested for 17 years at 12% compounded annually. c. $20,000 invested for 38 years at 16% compounded annually. d. $3,500 invested for 71 years at 8% compounded annually. e. $5,000 invested for 34 years at 11.5% compounded annually.arrow_forwardWhat will be the amount accumulated by eachof these present investments?(a) $12,250 in 15 years at 8.5% compoundedquarterly.(b) $15,750 in 12 years at 8.32% compounded weekly.(c) $25,500 in 10 years at 7.5% compounded monthly.arrow_forwardTo what amount will the following investments accumulate? a. $5,000 invested for 10 years at 10 percent compounded annually b. $8,000 invested for 7 years at 8 percent compounded annually c. $775 invested for 12 years at 12 percent compounded annually d. $21,000 invested for 5 years at 5 percent compounded annually use excel to work this out and show the formula!arrow_forward
- ( Compound interest) To what amount will the following investments accumulate? a.$6,000 invested for 12 years at 12 percent compounded annually b.$7,500 invested for 8 years at 8 percent compounded annually c.$6,400 invested for10 years at 10 percent compounded annually d.$22,000 invested for 6 years at 6 percent compounded annuallyarrow_forwardCalculate the present value of $9,000 received six years from today if your investments pay (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Present Value a. 6 percent compounded annually b. 8 percent compounded annually c. 10 percent compounded annually d. 10 percent compounded semiannually e. 10 percent compounded quarterlyarrow_forwardManually calculate the compound amount and compound interest (in $) for the investment. Time Period (years) Nominal Interest Compound Compound Interest Principal Rate (%) Compounded Amount $1,000 2 10 annually $ %24arrow_forward
- Manually calculate the compound amount and compound interest (in $) for the investment. Time Nominal Interest Compound Compound Principal Period (years) Rate (%) Compounded Amount Interest $1,000 10 annuallyarrow_forwardUsing Table 11-1, calculate the compound amount and compound interest (in $) for the investment. ( Round your answers to the nearest cent.) Principal Time Period (years) Nominal Rate (%) Interest Compounded Compound Amount Compound Interest $24,000 18 5 annuallyarrow_forwardUsing Table 11-1, calculate the compound amount and compound interest (in $) for the investment. (Round your answers to the nearest cent.) Time Principal Period (years) Nominal Rate (%) Interest Compounded $26,000 11 5 annually $ Compound Amount $ Compound Interestarrow_forward
- Manually calculate the compound amount and compound interest (in $) for the investment. Principal TimePeriod (years) NominalRate (%) InterestCompounded CompoundAmount CompoundInterest $1,000 2 10 annually $ $arrow_forwardCalculate the future value of the following single amounts. Initial Investment Annual Rate Interest Compounded Period Invested 1. $8,000 10% Annually 7 years 2. 6,000 12 Semiannually 4 years 3. 9,000 8 Quarterly 3 yearsarrow_forwardWhat is the future value of a lump sum of $18,443 invested for 15 years at 3.2 percent compounded annually? $29,581.97 $348,092.67 $29,786.22 $400,306.57arrow_forward
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