1. How much will you have at the end of 22 years if put $8680 per year at the end of each year into a saving account earning 1.6% annually?

2. How much do you need to invest today to have $89,000 at the end of 19 years if you can earn 6.5% annually?

Solution Preview

1.
Annual deposit=R=$8680
Number of periods=n=22
Interest ...

Solution Summary

This response looks at two problems. Solution to first problem depicts the steps to calculate the FV of an ordinary annuity. Solution to second problem calculates the PV of given cash flow.

Compute thefuturevalue of $1,000 compounded annually for
a. 10 years at 5 percent
b. 10 years at 7 percent
c. 20 years at 5 percent
d. Why is the interest earned in part (c) not twice the amount earned in part (a)

Please show how answer is obtained
Thepresentvalue of $20,000 (rounded to the nearest dollar) to be received two years from today, assuming an earnings rate of 12% is:
a. $17,860
b. $15,940
c. $14,240
d. $12,720

Calculate thefuturevalue of $150,000 fifteen year from today based on the following interest:
a. 3%
b. 6%
c. 9%
d. 12%
Calculate thepresentvalue of $35,000. 20 years from today based on the following annual discount rates:
a. 3%
b. 6%
c. 9%
d, 12%

Calculating Interest Rate. Find the interest rate implied by the following combinations of
presentandfuturevalues:
PresentValue Years FutureValue
$400 11 $648
$183 4 $249
$300 7 $300
Please show me how you calculated the problem so I can do it for my paper. These are not the

1. PresentValues. Compute thepresentvalue of a $100 cash flow for the following combinations of discount rates and times:
1. r = 8 percent. t = 10 years.
2. r = 8 percent. t = 20 years.
3. r = 4percent. t = 10 years.
4. r = 4 percent. t = 20 years.
2. FutureValues. Compute thefuturevalue of a $100 cash flow fo

1. Simple Interest versus Compound Interest - First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made $5,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years

Please help with the following problem.
What are the cash flows associated with calculatingthepresentvalue of preferred stock? What are the cash flows associated with calculatingthepresentvalue of common stock? Why is it more difficult to calculate thepresentvalue of common stock than it is to calculate thevalue of

Problem 1
Toadies, Inc., has identified an investment project with the following cash flows.
Year Cash Flow
1 $ 1,400
2 1,520
3 1,605
4 1,655
If the discount rate is 9 percent, what is thefuturevalue of the cash flows in year 4?
If the discount rat

Find thefuturevalue one year from now of a $7,000 investment at a 3 percent annual compound interest rate. Also calculate thefuturevalue if the investment is made for two years.
FV one year
FV two years
Sum of FV's
Find thefuturevalue of $10,000 invested now after five years if the annual interest rate is 8 percent