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 .
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
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Transcribed Image Text: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 be
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
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