Homework Help is Here – Start Your Trial Now!
Business
Finance
1. The future value of $200 received today and deposited at 8 percent for three years is

1. The future value of $200 received today and deposited at 8 percent for three years is

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question
1. The future value of $200 received today and deposited at 8 percent for three years is 2. The present value of $100 to be reccived 10 years from today, assuming an opportunity cost of 9 percent, is 3. Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of S65,000, what recommendation would you make to Aunt Tillie? 4. China Manufacturing Agents, Inc. is preparing a five-year plan. Today, sales are $1,000,000. If the growth rate in sales is projected to be 10 percent over the next five years, what will the dollar amount of sales be in year five? 5. Dan and Jia are newlyweds and have just purchased a condominium for $70,000. Since the condo is very small, they hope to move into a single-family house in 5 years. How much will their condo worth in 5 years if inflation is expected to be 8 percent? You deposit $17,000 each year for 10 years at 7%. Then you earn 9% after that. If you Jeave the money invested for another 5 years how much will you have in the 15th year? 7. If you depusit $45,000 into an account earning 4% interest compounded quarterly, how much would you have in 5 years? 8. How much would you pay for an investment which will be worth $16,000 in three years? Assume interest is 5%. 9. How much could be earned in an accourit by the end of 5 years if $100,000 is deposited and interest is 4% per year, compounded continuously? 10. Suppose you want to have S0.5 million saved by the time you reach age 30, and suppose you are 20 years old today. If you can earn 5% on your funds, how much you have to invest today to achieve your goal? 11. If I want to withdraw $5000 at the end of 5 years and again $6000 at the end of 6 years, leaving zero balance after my 6h ycar withdrawal. If my funds carm 5% today, how much should I deposit today to meet my future withdrawals?
Transcribed Image Text:1. The future value of $200 received today and deposited at 8 percent for three years is 2. The present value of $100 to be reccived 10 years from today, assuming an opportunity cost of 9 percent, is 3. Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of S65,000, what recommendation would you make to Aunt Tillie? 4. China Manufacturing Agents, Inc. is preparing a five-year plan. Today, sales are $1,000,000. If the growth rate in sales is projected to be 10 percent over the next five years, what will the dollar amount of sales be in year five? 5. Dan and Jia are newlyweds and have just purchased a condominium for $70,000. Since the condo is very small, they hope to move into a single-family house in 5 years. How much will their condo worth in 5 years if inflation is expected to be 8 percent? You deposit $17,000 each year for 10 years at 7%. Then you earn 9% after that. If you Jeave the money invested for another 5 years how much will you have in the 15th year? 7. If you depusit $45,000 into an account earning 4% interest compounded quarterly, how much would you have in 5 years? 8. How much would you pay for an investment which will be worth $16,000 in three years? Assume interest is 5%. 9. How much could be earned in an accourit by the end of 5 years if $100,000 is deposited and interest is 4% per year, compounded continuously? 10. Suppose you want to have S0.5 million saved by the time you reach age 30, and suppose you are 20 years old today. If you can earn 5% on your funds, how much you have to invest today to achieve your goal? 11. If I want to withdraw $5000 at the end of 5 years and again $6000 at the end of 6 years, leaving zero balance after my 6h ycar withdrawal. If my funds carm 5% today, how much should I deposit today to meet my future withdrawals?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Present Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS