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Future Value of Investments

6. Calculate the future value of $2000 in 5 years at an interest rate of 5% per year.
$6,245.97
$3,221.02
$3,257.79
$2,552.56
$2,145.48

7. Calculate the future value of $2000 in 10 years at an interest rate of 5% per year.
$6,245.97
$3,221.02
$3,257.79
$2,552.56
$2,145.48

. Calculate the future value of $2000 in 5 years at an interest rate of 10% per year.
$6,245.97
$3,221.02
$3,257.79
$2,552.56
$2,145.48

10. What is the present value of $10,000 received 12 years from today when the interest rate is 4% per year?
$2,145.48
$8,879.71
$5,083.49
$2,552.56
$6,245.97

11. What is the present value of $10,000 received 20 years from today when the interest rate is 8% per year?
$2,145.48
$8,879.71
$5,083.49
$2,552.56
$6,245.97

12.What is the present value of $10,000 received 6 years from today when the interest rate is 2% per year?
$2,145.48
$8,879.71
$5,083.49
$2,552.56
$6,245.97

15. You have found three investment choices for a one-year deposit: Compute the EAR for 10% APR compounded monthly. (Assume that there are 365 days in the year.)
1.100%
$10.00
$1.09416
9.416%
10.471%

16. You have found three investment choices for a one-year deposit: Compute the EAR for 10% APR compounded annually. (Assume that there are 365 days in the year.)
1.100%
$10.00
10.000%
$9.416
10.471%

17. You have found three investment choices for a one-year deposit: Compute the EAR for 9% APR compounded daily. (Assume that there are 365 days in the year.)
1.100%
$1.09416
9.416%
$9.416
10.471%

Solution Summary

This solution explains:

1) How to calculate the future value of an investment based on a given interest rate.

2) How to calculate the future value of an investment based on a given interest rate and monthly, yearly, or daily compounding.

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