Present value
Not what you're looking for?
As of July 16, 2007 the Prime Rate was 8.25% (Accessed from http://www.bloomberg.com/rates/)
Question 1. Using the above amount as the prime rate; If you put $5,000.00 into an account that earns the current Prime Rate as the interest rate compounded annually, how much will you have in 10 years? (Show your work. If you use Excel or a financial calculator, explain the steps you used to answer the question)
As of July 16, 2007, the 1-Year LIBOR rate was 5.4048% (Accessed from http:/www.moneycafe.com/library/libor.htm)
Question 2. Using the above amount as the 1-Year LIBOR rate, what is the present value of $100,000 that you will receive in 28 years if the current 1-Year LIBOR rate is used as the discount rate? (Show your work. If you use Excel or a financial calculator, explain the steps you used to answer the question
Question 3. briefly discuss how one can apply what was learned in this project to one's career or personal financial life.
Purchase this Solution
Solution Summary
Present value is highlighted.
Solution Preview
Question 1. Using the above amount as the prime rate; If you put $5,000.00 into an account that earns the current Prime Rate
as the interest rate compounded annually, how much will you have in 10 years? (Show your work. If you use Excel or a financial calculator, explain the steps you used to answer the question)
Thus one has to calculate the compounded value of annuity
Here we have to find out the compounded value of annuity
F=A*((1+r)^n-1)/r
F=Future value, A= ...
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.