Solutions worksheet for Time Value of Money questions in Chapter PPT

MAA MATHEMATICAL ASSOCIATION OF AMERICA Simple and Compound Interest / 8 Previous Problem Problem List Next Problem HW 20 Simple and Compound Interest: Problem 8 (2 points) How much do you need to invest in an account earning an annual interest rate of 3.734% compounded weekly, so that your money will grow to $7,550.00 in 44 weeks? The amount you need to invest is (Note: Your answers should include a dollar sign and be accurate to two decimal places) Preview My Answers Submit Answers You have attempted this problem 0 times. You have unlimited attempts remaining. Page generated at 05/04/2024 at 02:45pm EDT WeBWorK 1996-2022 | theme: math4-green | ww_version: 2.17 | pg.version 2.17 | The WaßWork Project

Investigating Continuous Growth For part a, use the continuous compound interest formula, A(t) = Pet Suppose an investment account is opened with an initial deposit of $11,500.00 earning 7.1% interest compounded continuously (Use the "S" symbol in your answers. Round to the nearest cent, if necessary) a. How much will the account be worth after 25 years? b. How much will the account be worth after 25 years if it were compounded monthly instead? Ca.

please help with this Q

please help with this Q

Consider the following cash flows:   Year Cash Flow 2   $ 22,900   3     40,900   5     58,900       Assume an interest rate of 9.7 percent per year.   a. If today is Year 0, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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What is the present value of $3,000 received a. 10 years from today if the interest rate is 4% per​ year? b. 20 years from today if the interest rate is 8% per​ year?       Question content area bottom Part 1 a. The present value is ​$enter your response here. ​ (Round to the nearest​ cent.) b. The present value is ​$enter your response here. ​ (Round to the nearest ​cent.)

5. Present value To find the present value of a cash flow expected to be paid or received in the future, you will the future value cash flow by (1+1)N What is the value today of a $42, 000 cash flow expected to be received 17 years from now based on an annual interest rate of 7% ? $13,296 $10,637 $132, 670 $20, 609 Your broker called carfier today and offered you the opportunity to invest in a security. As a friend, he suggested that you compare the current, or present value, cost of the security and the discounted value of its expected future cash flows before deciding whether or not to invest. The decision rule that should be used to decide whether or not to invest should be. Everything else being equal, you should invest if the discounted value of the security's expected future cash flows is greater than or equal to the current cost of the security. Everything else being equal, you should invest if the current cost of the security is greater than the present value of the security's…

QUESTION 1 i. You just put $1,000 in a bank account that pays 6 percent nominal annual interest, compounded monthly. How much will you have in your account after 3 years? ii. You are currently investing your money in a bank account that has a nominal annual rate of 7 percent, compounded monthly. How many years will it take for you to double your money? iii. A real estate investment has the following expected cash flows: Cash Flows $10,000 Year 1 25,000 3 50,000 35,000 The discount rate is 8 percent. What is the investment's present value?

An investment has the following expected cash flows: Year 2 3 Cash Flows $10,033 $20,003 30,000 The discount rate is 8 percent. The investment's future value at the end of year 3 is $ ___(keep two decimal places)

GE-MM The Mathematics of Finance 1. What is the simple interest for a principal of $650 invested at a rate of 9% for 5 years? 2. $4200 is invested for 9 months at an annual simple interest rate of 12%. How much interest will be earned? Round your answer to the nearest cent, if necessary. 3. Calculate the simple interest earned when P = S 14,000, r = 8.9% and * = 70 days using the ordinary method. Round to the nearest cent. 4. What is the simple interest to the nearest cent on a credit card balance of $1,150.00 at 11% interest for 3 months? 5. Use the formula 4 = P(1+rt) to calculate the maturity value of the simple interest loan when P = $3400, 7= 6.6% and = 2 months. 6. Calculate the simple interest rate when P = $ 3600_ I = $ 160 and months. Round to the nearest hundredth. 7. Calculate the simple interest due on a four-month loan of $900 if the interest rate is 2.2% per month. 8. Andre De Quadros bought a $1500, 9-month certificate of deposit (CD) that would earn 9% annual simple…

Question Content Area Use the present value and future value tables to answer the following questions. A. If you would like to accumulate $2,500 over the next 3 years when the interest rate is 15%, how much do you need to deposit in the account? $fill in the blank 1 B. If you place $6,300 in a savings account, how much will you have at the end of 8 years with a 12% interest rate? $fill in the blank 2 C. You invest $9,000 per year for 9 years at 12% interest, how much will you have at the end of 9 years? $fill in the blank 3 D. You win the lottery and can either receive $740,000 as a lump sum or $60,000 per year for 19 years. Assuming you can earn 8% interest, which do you recommend and why? Please round off answers

a. Find the FV of $1,000 invested to earn 10% after 5 years. Round your answer to the nearest cent. $ b. What is the investment's FV at rates of 0%, 4%, and 25% after 0 , 1, 2, 3, 4, and 5 years? Round your answers to the nearest cent. Year 0 1 2 3 4 5 $ $ $ $ $ $ 0% $ $ $ $ $ $ Interest Rate 4% $ $ $ $ $ $ 25%

Q8: Please show exact detailed steps in each problem

Need D and C please use IT-84 calculator  what is  N = I%= PV= PMT=FV= What are we solving for? Thank you

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Suppose the interest rate is 3.6% b. Having $650 in one year is equivalent to having what amount today? c. Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the money? Why or why not? **round to the nearest cent**