Time value of money
Not what you're looking for?
? Annsley deposits $1,000 today into a savings account that pays 3% annual interest. How much will she have in 15 years with annual compounding?
? What is the present value of $20,000 to be received in 30 years if the appropriate discount rate is 9%?
? How do we determine the appropriate discount rate to use when computing the present value of a certain amount of cash to be received at a certain future point in time?
? For a 4-year car loan in the amount of $35,000 with an annual interest rate of 6% and monthly payments, what will be the remaining balance on the loan immediately after the first month's payment is made?
? Suppose you invest $3,000 per year into an IRA every year for 25 years beginning today. If you earn 7% per year on your investments, what will be the value of your IRA in 25 years?
? Suppose you want to have $2,000,000 when you retire in 30 years. Assume you will earn 8% per year on your investments. How much would you have to invest at the end of each year for the next 30 years to reach your $2,000,000 goal?
Purchase this Solution
Solution Summary
The solution explains various questions relating to annual compounding, PV, discount rate, FV, annuity and payment amount
Purchase this Solution
Free BrainMass Quizzes
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Introduction to Finance
This quiz test introductory finance topics.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.