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Prob 9-1 Find the future value one year from now o...

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Prob 9-1 Find the future value one year from now of a $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future value if the investment is made for two years. FV one year FV two years Sum of FV's Prob 9-2 Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. a. What would be the future value if the interest rate is a simple interest rate? FV using simple interest b. What would be the future value if the interest rate is a compound interest rate? FV using compound interest Prob 9-5 Find the present value of $7,000 to be received one year from now assuming a 3 percent annual discount interest rate. Also calculate the present value if the $7,000 is received after two years. PV received one year from now PV received two years from now Prob 9-10 Determine the present value now of an investment of $3,000 made one year from now and an additional $3,000 made two years from now if the annual discount rate is 4 percent. PV one year from now PV two years from now Prob 9-20 Use a financial calculator or computer software program to answer the following questions. a. What is the present value of $359,000 that is to be received at the end of twenty-three years, the discount rate is 11 percent, and semiannual discounting occurs? PV w/ semi-annual discounting b. How would your answer for (a) change if monthly discounting were used? PV w/ monthly discounting

 

Paper#13715 | Written in 18-Jul-2015

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