5. (Computation of FutureValues and Present Values) Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.)
a. What is the futurevalue 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
FutureValues- Compute the futurevalue of a $100 cash flow for the same combinations of rates and times as in problem 1.
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
You have just purchased a 10 year $1000 par value bond. The coupon rate on this bond is 8 percent annually, with interest being paid each six months. If you expect to earn 10 percent simple rate of return on this bond how much did you pay for it?
You expect to receive $1000 at the end of each of the next three years. You wi
1. Futurevalue of single sum problem.
You put $1,000 in an investment account which earns 7% over the next 20 years, what is the futurevalue of this investment?
2. Holding Period Return
Based on the following information calculate the holding period return:
P0 = $14.00
P1 = $17.40
D1 = $ .42