Assume you invest $15,000 today. How much will you have in five years at an interest rate of 10%? Future Value of $1: 8% 9% 10% 1 1.080 1.090 1.100 2 1.166 1.188 1.210 3 1.260 1.295 1.331 4 1.360 1.412 1.464 5 1.469 1.539 1.611 6 1.587 1.677 1.772 A. $24,165 B. $23,085 C. $21,960 D. $26,580

Assume you invest $15,000 today. How much will you have in five years at an interest rate of 10%? Future Value of $1: 8% 9% 10% 1 1.080 1.090 1.100 2 1.166 1.188 1.210 3 1.260 1.295 1.331 4 1.360 1.412 1.464 5 1.469 1.539 1.611 6 1.587 1.677 1.772 A. $24,165 B. $23,085 C. $21,960 D. $26,580

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 9EB: If you invest $15,000 today, how much will you have in (for further instructions on future value in...

See similar textbooks

Related questions

Q: Solve the above two cases (the cases are independent). What is the accounting rate of return?…

A: The projected worth of the initial investment after a certain amount of time, taking into account…

Q: $27,831.47 $29,851.84 E S29,083.89 $30,729.84

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: 1- If you invested $10,000 in an investment account and you expect it to double in 4 years, what…

A: 1. Investment= $10000 time= 4 years

Q: What is the future value of $10,000 invest today in a savings account with an interest rate of 12%…

A: An amount deposited in the account earns interest for the duration of the investment. The amount…

Q: You invest $9,000 today at an annual interest rate of 5%. How much do you expect to have 5 years…

A: P = $9,000r = 5% = 0.05n = 5

Q: If you borrow $6,000 for 4 years and agree to pay back $8000, what simple interest rate will you end…

A: Simple interest is the type of interest that is calculated only on the principal amount. Simple…

Q: What is the future value (FV) of $20,000 in four years, assuming the interest rate is 4% per year? O…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: You plan to invest $19,000 per year into a retirement account. If you earn a compound annual rate of…

A: Future value (FV) is the value of an investment or cash flow at a specific point in the future,…

Q: Assume you invest $19,000 today. How much will you have in six years at an interest rate of 9%?…

A: Formula to compute the Future value is as follows: FV=PV(1+r)n where, FV=Future valuePV =Present…

Q: 6. Future values (S2.1) If you invest $100 at an interest rate of 15%, how much will you have at the…

A: Future value is computed by following formula-FV = A × (1+ r)nwhere,FV = future value A = Amount…

Q: Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of…

A: Annual deposit for 3 years = $ 1000 Annual interest rate = 5% Future value period = 4 Years

Q: An investment will provide you with $100 at the end of each year for the next 10 years. What is the…

A: Time period is 10years Discount rate is 8% Annuity amount per year is $100 To Find: Present Value…

Q: You want to have $3.5 million in real dollars in an account when you retire in 50 years. The nominal…

A: The formula used to compute real rate of return as follows: Real rate of return=1+Nominal…

Q: You are opening an investment account that will earn 6.5% compounded annually. You will invest…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: At the end of each of the next 5 years, you will deposit the following amount into your savings…

A: Compounding the present value provides future value

Q: Suppose you wish to have $16,250 in 5 years. Use the present value formula to find how much you…

A: In this question we need to compute the present value and amount of interest.

Q: What is the future value of an investment

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: What will be the value of your saving in 4 years with an interest rate of 10% if you invest $120…

A: Using excel FV function

Q: WHAT WILL BE THE FUTURE WORTH OF MONEY AFTER 6 MONTHS, IF THE SUM OF P100,000 IS INVESTED TODAY AT…

A: Future worth of money at simple interest is calculated as follows Future value of amount invested =…

Q: Use the present value and future value tables to answer the following questions. A. If you would…

A: Future value = Present value * ( 1 + Ineterest rate )n

Q: What will the value of your account be 4 years from today?

A: Future Value of Annuity: It is the future worth of the present stream of cash flows. It is…

Q: Suppose you wish to have $17,250 in 5 years. Use the present value formula to find how much you…

A: Compound = semiannually = 2 Future value = fv = $17,250 Time = t = 5 * 2 = 10 Interest rate = r = 5…

Q: Future Value You invest $1,000 today and exect to sell the investment for $2,000 in 10 years. a. Is…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: Assume you invest $15,000 today. How much will you have in six years at an interest rate of 9%?…

A: Future value:Based on the investment's current value and anticipated future growth, the future value…

Q: Assume you can obtain an annual interest rate of 12% compounding monthly. You are going to invest…

A: The quantity of compounding periods significantly affects how compound interest is calculated. The…

Q: 4. If you invest $10,000 today at an interest rate of 7% for 5 years, what is the present value of…

A: The time value of money refers to the observation that is better to receive money sooner than later.…

Q: You have RM 5,000.00 you want to invest for the next 45 years until retirement. You are offered an…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Suppose you are going to invest $11,000 per year for six years. The appropriate interest rate is 9…

A: Annuity refers to a series of regular payments being made for a defined period. When the payments…

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

Assume you invest

$15,000

today. How much will you have in five years at an interest rate of 10%?

Future Value of $1:

	8%	9%	10%
1	1.080	1.090	1.100
2	1.166	1.188	1.210
3	1.260	1.295	1.331
4	1.360	1.412	1.464
5	1.469	1.539	1.611
6	1.587	1.677	1.772

$24,165

$23,085

$21,960

$26,580

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
Assume you invest $15,000 today. How much will you have in six years at an interest rate of 9%? Future Value of $1: 8% 123456 1.080 1.166 1.260 1.360 1.469 1.587 OA. $23.805 OB. $25,155 OC. $26.580 OD. $23,085 9% 1.090 1.188 1.295 1.412 1.539 1.677 10% 1.100 1.210 1.331 1.464 1.611 1.772 MAKED ہے
Assume you invest $19,000 today. How much will you have in six years at an interest rate of 9%? Future Value of $1: 8% 9% 10% 1 1.080 1.090 1.100 2 1.166 1.188 1.210 3 1.260 1.295 1.331 4 1.360 1.412 1.464 5 1.469 1.539 1.611 6 1.587 1.677 1.772 A. $31,863 B. $29,241 C. $33,668 D. 30,153
What is the present value of $14,000 to be received in one year if the interest rate is 8% p.a.? a. $6000 b. $15120 c. $12963 d. $22000
What is the future value of an investment if you deposit $100 annually for 5 years at an interest rate of 10%? 615.5 612.2 605.8 610.5
6. Future values (S2.1) If you invest $100 at an interest rate of 15%, how much will you have at the end of eight years?
WHAT WILL BE THE FUTURE WORTH OF MONEY AFTER 6 MONTHS, IF THE SUM OF P100,000 IS INVESTED TODAY AT SIMPLE INTEREST RATE OF 5% PER YEAR? O a. P102,050.00 O b. P120,500.00 O c. P102,510.00 O d. P102,500.00
Solve this question with steps please. The subject is financial management.
What is the 'future value in one year' of $106 today if the annual interest rate is 6%? A. $106.00 B. $112.36 C. $220.48 D. $100.00
2. Find the future value of OMR10,000 invested now after five years if the annual interest rate is 8 percent. a. What would be the future value if the interest rate is a simple interest rate? b. What would be the future value if the interest rate is a compound interest rate?