P2: Find the FV of $10,000 invested now after five years if the annual interest rate is 8%.<\/p>\n
a. What would be the FV if the interest rate is a simple interest rate?<\/p>\n
b. What would be the FV if the interest rate is compound interest rate?<\/p>\n
P3: Determine the future values (FVs) if the $5,000 is invested in each of the following situations-<\/p>\n
a. 5% for 10 years<\/p>\n
b. 7% for 7 years<\/p>\n
c. 9% for 4 years<\/p>\n
P4: You are planning to invest $2,500 today for three years at the nominal interest rate of 9% with annual compounding.<\/p>\n
a. What would be the future value (FV) of your investment?<\/p>\n
b. Now assume that inflation is expected to be 3% per year over the same three-year. What would be the investment\u2019s FV in terms of purchasing power?<\/p>\n
c. What would be the investment\u2019s FV in terms of purchasing power if inflation occurs at a 9% annual rate?<\/p>\n
P5: Find the present value (PV) of $7,000 to be received one year from now assuming a 3% annual discount interest rate. Also calculate the PV if the $7,000 is received after two years.<\/p>\n
P7: Determine the present values (PVs) if $15,000 is to be received at the end of eight years and the discount rate is 9%. How would your answer change if you had to wait 6 years to receive the $15,000?<\/p>\n
P16: Use a financial calculator or computer software program to answer the following questions-<\/p>\n
a. What would be the future value (FV) of $15,555 invested now if it earns interest at 14.5% for 7 years?<\/p>\n
b. What would be the FV of $19,378 invested now if the money remains deposited for 8 years and the annual interest rate is 18%?<\/p>\n
P17: Use a financial calculator or computer software program to answer the following questions-<\/p>\n
a. What is the present value (PV) of $359,000 that is to be received at the end of 23 years if the discount rate is 11%?<\/p>\n
b. How would your answer change in (a) if the $359,000 is to be received at the end of 20 years?<\/p>\n
P19: Use a financial calculator or computer software program to answer the following questions-<\/p>\n
a. What would be the future value (FV) of $19,378 invested now if the money remains deposited for 8 years, the annual interest rate is 18%, and invest on the investment is compounded semi-annually?<\/p>\n
b. How would your answer for (a) change if quarterly compounding were used?<\/p>\n","protected":false},"excerpt":{"rendered":"
P2: Find the FV of $10,000 invested now after five years if the annual interest rate is 8%. a. What would be the FV if the interest rate is a simple interest rate? b. What would be the FV if Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-170648","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/170648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=170648"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/170648\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=170648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=170648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=170648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}