5-4. (Compound value solving for r) At what annual rate would the following have to be invested? Mylab a. $820 to grow to $1,988.12 in 13 years b. $320 to grow to $423.10 in 6 years c. $57 to grow to $290.30 in 18 years d. $230 to grow to $576.60 in 5 years
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- At what annual rate would the following have to be invested? a. $490 to grow to $963.90 in 10 years b. $280 to grow to $557.92 in 8 years c. $52 to grow to $419.24 in 20 years d. $212 to grow to $268.25 in 6 years a. At what annual rate would $490 have to be invested to grow to $963.90 in 10 years?3. 4. How much interest on interest is earned in an account by the end of 5 years if $100,000 is deposited and interest is 4% per year, compounded continuously? How much will be in an account at the end of five years the amount deposited today is $10,000 and interest is 8% per year, compounded semi-annually? Complete the following, solving for the present value, PV: Case A B C Future value $10,000 $563,000 $5,000 Interest Number of rate periods 5% 5 4% 5.5% 20 3 Present valueIf $2500 were invested for 5 years at 10% nominal interest compounded daily, what would be the future amount? Select one: a. $4121.73 b. $6521.73 c. $3121.73 d. $5121.73
- E1 - 27 - What is the future value (FV) after 6 years of the following investments: Payment $200 per month starting month 1. Interest Rate is 9% per year compounded quarterly, need in excel1) What amount invested each year at 3% annually will grow to $200,000 at the end of 25 years? a. $1,822.67 b. $2,095.25 c. $5,485.57 d. $233.33 2) If the payments in #1 were made at the beginning of the year, what amount would need to be invested each year ? a. $2,107.13 b. $2,002.44 c. $5,622.23 d. $5,325.80Complete the table to find the amount P that must be invested at rate r to obtain a balance of A = $300,000 in t years. (Round your answers to the nearest cent.) r = 7%, compounded daily t 1 10 20 30 40 50 P $ $ $ $ $ $
- When an initial amount of P dollars is invested at r% annual interest compounded n times per year, the value of the account (4) after years is given by the equation nt A=P(1 + =)** n Write an equation that represents the value in an account that starts out with an initial investment of $5000 and pays 10% interest compound monthly. Then use that equation to fill the table and use the table to graph the equation. Years (1) Value (4) 0 5 10 15 20 oo → KICalculate the future value of the following single amounts. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2 3. Initial Annual Investment Rate $ 7,200 5,200 8,200 8% 8% 8% Interest Compounded Annually Semiannually Quarterly Period Invested 9 years 6 years 3 years Future ValueCalculate the future value of the following single amounts. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2. 3 Initial Annual Interest Investment Rate," Compounded $ 10% Annually 12% 8% 7,400 5,400 8.400 Semiannually Quarterly Period Invested 7 years 4 years 4 voorn A Future Value
- Suppose $100 is invested at the end of each year for the next 5 years into an account paying an interest rate r% p.a. How much can be drawn at the end of the 5 years? Approach (i) The first $100 is contributed in one year's time and has to wait 4 years to "mature". Write an equation describing this. (ii) The second $100 is contributed in two year's time and has to wait 3 years to "mature". Write an equation describing this. (iii) The third $100 is contributed in three year's time and has to wait 2 years to "mature". Write an equation describing this. (iv) Continue with this logic and sum all the matured values expressed1 (1+r)" 3. Present Value: P = FV- or P = F(1+i) -n a) Find the present value of P8,000 due in four years at 8% compounded semi-annually b) P22,500 is due in 6 years at 12% compounded annually. Determine the present value c) Find the present value of each of the following: aa. P28,300, 8% every 6 months for 5 years bb. P27,500, 12% monthly. Terms, 3 years and 7 months cc. P83,900, 10% quarterly, Terms, 6 years and 9 months dd. P71,520, 7% semi-annual for 12 years ee. 68,900, 6% annually for 15 years.Calculate the future value of the following single amounts. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Initial Investment Annual Rate Interest Compounded Period Invested Future Value 1. $7,400 10 % Annually 7 years $14,420.00 2. 5,400 12 % Semiannually 4 years 3. 8,400 8 % Quarterly 4 years
