Present Value / Future Value
Not what you're looking for?
Show the formula used in the following questions in detail
1)
a. What is the future value of $4,000 invested at 6% for 22 years with annual compounding?
b. What is the future value of $4,000 invested at 6% for 22 years with monthly compounding?
c. What is the future value of $4,000 invested at 6% for 22 years with continuous compounding?
d. What is the present value of 1,000,000 pesos due in 14 years with a discount rate = 7% using annual compounding?
e. What is the present value of 1,000,000 peso due in 14 years with a discount rate = 7% using continuous compounding?
Purchase this Solution
Solution Summary
The solution explains the calculation of present value and future value
Solution Preview
1)
a. What is the future value of $4,000 invested at 6% for 22 years with annual compounding?
The future value can be found using the formula FV = PV X (1+r)^n.
Here FV is the future value
PV is the present value
r is the rate
n is the time period
FV = 4,000 X (1+6%)^22 = $14,414.15
b. What is the future value of $4,000 invested at 6% ...
Purchase this Solution
Free BrainMass Quizzes
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce