(Present and future values) Assume that you are starting with an investment of $10,000.

a. What is the future value of the investment after one year if it earns 10% per year? What is the present value of this future value discounted at 10%?

b. What is the future value of the investment after one year if it earns 20% per year? What is the present value of this future value discounted at 10%?

c. What is the future value of the investment after one year if it earns 10% per year? What is the present value of this future value discounted at 20%?

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Present Value & Future Value 2

(Present and future values) Assume that you are starting with an investment of $10,000.

Future Value= Present Value x (1+ interest rate ) ^ time
Present Value = Future Value / (1+ discount rate ) ^ time

a. What is the future value of the investment after one year if it earns 10% per year? What is the present value of this future value discounted at 10%?

5. (Computation of FutureValuesandPresentValues) Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.)
a. What is the future value of $7,000 at the end of 5 periods at 8% compounded interest?
b. What is the present value of $7,000 due 8 periods hence, disc

E6-4 (Computation of FutureValuesandPresentValues)
Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.)
[a] What is the future value of 20 periodic payments of $4,000 each made at the beginning of each period and compounded at 8%?
[b] What is the p

Which factor would be greater: the present value of $1 for 10 periods at 8% per period or the future value of $1 for 10 periods at 8% per period?
a. Future value of $1 for 10 periods at 8% per period.
b. Present value of $1 for 10 periods at 8% per period.
c. The factors are the same.
d. Need more information

1. PresentValues. Compute the present value of a $100 cash flow for the following combinations
of discount rates and times:
a. r = 8 percent. t = 10 years.
b. r = 8 percent. t = 20 years.
c. r = 4 percent. t = 10 years.
d. r = 4 percent. t = 20 years.
2. FutureValues. Compute the future value of a $100 cash flow for th

Find the interest rate implied by the following combination of presentandfuturevalues:
Present Value=400, Future Value=684, Years=11
Present Value=183, Future Value=249, Years=4
Present Value=300, Future Value=300, Years=7
Please show work. Thanks!

E6-3 (Computation of FutureValuesandPresentValues) Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.)
(a) What is the future value of $7,000 at the end of 5 periods at 8% compounded interest?
(b) What is the present value of $7,000 due 8 periods hence, di

How to find the presentandfuturevalues of this problem in detail
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Compute the present value of a $100 cash flow for the following combinations of discount rates and times:
a. r = 8 percent, t = 10 years
b. r = 8 percent, t = 20 years
c.

If the interest rate this year is 7.2% and the interest rate next year will be 9.2%, what is the future value of $1 after 2 years? What is the present value of a payment of $1 to be received in 2 years? (Do not round intermediate calculations. Round your answers to 4 decimal places.)
Future value $
Present valu