Compute the future value of $1,000 at an interest rate of 12 percent 5, 10, and 15 years into the future. What would the future value b over these time horizons if the interest rate were 6 percent? Instructions: Enter your responses rounded to the nearest penny (two decimal places). Do not round intermediate calculations. At an interest rate of 12 percent: Future value in 5 years = $ Future value in 10 years = $ Future value in 15 years = $ At an interest rate of 6 percent: Future value in 5 years = $ Future value in 10 years = $ Future value in 15 years = $ The patterns over different time horizons and at different interest rates show that as the time horizon lengthens, the future value As the interest rate declines, the future value decreases # increases .

Compute the future value of $1,000 at an interest rate of 12 percent 5, 10, and 15 years into the future. What would the future value b over these time horizons if the interest rate were 6 percent? Instructions: Enter your responses rounded to the nearest penny (two decimal places). Do not round intermediate calculations. At an interest rate of 12 percent: Future value in 5 years = $ Future value in 10 years = $ Future value in 15 years = $ At an interest rate of 6 percent: Future value in 5 years = $ Future value in 10 years = $ Future value in 15 years = $ The patterns over different time horizons and at different interest rates show that as the time horizon lengthens, the future value As the interest rate declines, the future value decreases # increases .

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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