Calculate the present value of an investment that is compounded daily
An investment will pay you $45,000 in 6 years. If the appropriate discount rate is 8% compounded daily, what is the present value?
Solve using a spreadsheet.
Solution Summary
The solution presents a spreadsheet with clear explanations of how to use the Excel functions to solve the problem. Then the amounts are given for this problem to be inserted into the functions.
You are considering an investment with a quoted return of 10% per year. If interest is compoundeddaily, what is the effective return on this investment?
a. 1.11%
b. 10.00%
c. 10.25%
d. 10.47%
e. 10.52%
6. Calculatethe future value of $2000 in 5 years at an interest rate of 5% per year.
$6,245.97
$3,221.02
$3,257.79
$2,552.56
$2,145.48
7. Calculatethe future value of $2000 in 10 years at an interest rate of 5% per year.
$6,245.97
$3,221.02
1)
Calculatethe future value of $2000 in
a) 5 years at interest rate of 5% per year
b) 10 years at an interest rate of 5% per year
c) 5 years at an interest rate of 10% per year
d) why is the amount of interest earned in part (a) less than half the amount of interest earned in (b)
2)
You are thinking of retiring. Your
Here are the exercises: Can you also briefly explain why with 2-3 sentences, Thank you I am trying to better understand it.
1.
(Compound interest) To what amount will the following investments accumulate? Why you think this way?
a. $5,000 invested for 10 years at 10 percent compounded annually
b. $8,000 invested for 7 years
1. If a nurse deposits $1,000 today in a bank account and the interest is compounded annually at 12%, what will be thevalue of this investment:
a) five years from now?
b) ten years from now?
c) fifteen years from now?
d) twenty years from now?
1. I invested $15,000 today in a fund that earns 8% compounded annually. To what amount will theinvestment grow in 3 years?
2. To what amount would theinvestment grow in 3 years if the fund earns 8% compounded semiannually?
3. I need $25,000 in 4 years. What amount must be invested today if his investment earns 12% comp
1. For the following problems, determine how many years it will take for the two accounts to reach the same amount.
A 1000 dollar investment at a rate of 3% compounded monthly and an 1100 dollar investment at a rate of 3.02% compounded annually.
A 2000 dollar investment at a rate of 4% compounded continuously and a 3000 doll
Find the accumulated amount A if $3100.00 is invested at the interest rate of 7.855%/year compoundeddaily for 12 years.
Find the effective rate corresponding to a 3.95%/year compoundeddaily.
Find thepresentvalue of $75,000 due in 5 yr at 9.3%/year compounded monthly.
David owns $30,000 of 15-yr public bonds. T
