If you invest 5000 dollars today at a compound interest rate of 10 percent, compounded semi-annually, what will be its future value after 5 years Select one: a. 8,052 dollars. b. 8,000 dollars. c. 8,144 dollars. d. 2,500 dollars. e. 7,500 dollars.

If you invest 5000 dollars today at a compound interest rate of 10 percent, compounded semi-annually, what will be its future value after 5 years Select one: a. 8,052 dollars. b. 8,000 dollars. c. 8,144 dollars. d. 2,500 dollars. e. 7,500 dollars.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 9EA: If you invest $12,000 today, how much will you have in (for further Instructions on future value in...

See similar textbooks

Related questions

Q: You plan to invest $50,000 today at an annual interest rate of 12% over 5 years. What the future…

A: Following details are given in the question: Present value (Investment today) = $50000 time period =…

Q: What is the future value of $118,000 invested for 5 years at 11% compounded monthly? (a) State the…

A: The future value of a single payment is only referred to as simple future value. An annuity requires…

Q: If you invest %750 at an interest rate of 7% compounded annually, how much would the $750 be worth…

A: The question is based on calculation of future value of an investment. Formula as, FV= PV(1+r)n

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: If you invest $5,000 three years from now, how much will be in h 15 f if 10% d d ll ? the account 15…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

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: How much will a $100 deposit made today be worth in 10 years if interest is compounded quarterly at…

A: Future value of the deposit includes the amount being deposited and amount of interest accumulated…

Q: What is the future value of an ordinary annuity that pays $4,600 per year for 4 years? The…

A: Annuity = a = $4600Time = t = 4 YearsInterest Rate = r = 7%

Q: What would be the future value of $7,992 invested annually for nine years beginning one year from…

A: future value formula: future value =A×1+rn-1r where, A=annuity r=rate of interest n=number of years

Q: For $5,000, you can purchase an ordinary annuity that will pay you $920.23 each year for 8 years.…

A: The annuity is the periodic payment received in each period. The present value is the discounted…

Q: If you invest $9,700 per period for the following number of periods, how much would you have…

A: aWe can solve this using Future value of annuity formula Future value is = P*((1+r)^n-1)/r "P" is…

Q: Find the present value of the given future amount. $70,093 for 324 days at 6.4% simple interest.…

A: Intreast rate for 324 Days =6.4×324÷360=5.76% Future value =70,093

Q: What's the future value of $15,000 after 11 years if the appropriate interest rate is 10.75%,…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: What is the future value in 12 years of $1,000 payments received at the beginning of each year for…

A: As a first step, let's gather all the information that question has to offer.Annuity investment = A…

Q: If you invest $8,000 at the end of every year for nine years at an interest rate of 8%, the balance…

A: A present asset's future value, abbreviated as FV, is the value that an asset is expected to have at…

Q: Classify the financial problem. Assume a 9% interest rate compounded annually. Deposit $200 at the…

A: Solution:- When an equal amount is deposited each year, it is called annuity. The accumulated value…

Q: Assume you receive $240,000 in five years and the annual interest rate is six percent. Factors for a…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: Calculate the future value in five years of $5,000 received today if your investments pay. 6 percent…

A: Future value =Present value *(1+rateper period)^n Where, n = no. of compounding period

Q: What is the present value of $1,000 paid at the end of each of the next 100 years if the interest…

A: Payment = p = $1000Time = t = 100 YearsInterest rate = r = 4%

Q: What is the future value in 2 years if you invest $100 at the beginning of each month for 12 months…

A: Future value of money includes the amount of deposit being made and the amount of compounded…

Q: Calculate the future value in five years of $4,000 received today if your investments pay for the…

A: Variables in the question:PV=$ 4000N=5 yearsFormula to be used:FV=PV * (1+r)^n

Q: You are calculating the present value of $1,000 that you will receive five years from now.Which…

A: Given case is: You are calculating the present value of $1,000 that you will receive five years from…

Q: If you invest $12,000 today, how much will you have: In 6 years at 7 percent? a. 5. In 15 years at…

A: The future value (FV) is a financial concept that represents the projected worth of a sum of money…

Q: What's the future value of $1,225 after 5 years

A: Future value (FV) refers to a method of calculating how much the present value (PV) of an asset or…

Q: ow at 9.6%?

A: Here, P = $10,800 i = 0.096 n = 11 Now, Future Value of Annuity (FVA) is FVA=P x(1+i)n-1i…

Q: What is the total future value ten years from now of $400 received in 1 year, $350 received in 2…

A: Future value of a present amount With present value (PV), annual interest rate (r) and period (n),…

Q: You want to invest 8000$ at an annual interest rate of 8% that compounds annually for 12 years.…

A: The future value of money concept is a fundamental concept of financial management. The future value…

Q: If you invest $9,400 per period for the following number of periods, how much would you have…

A: Payment = p = $9400

Q: Find the present value of the given future amount. $183,714 for 321 days at 5.6% simple interest.…

A: The simple interest is interest without compounding that means there is no interest on interest and…

Q: If you invest $1,127 at the end of each year for 6 years and you earn 14% interest compounded…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

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

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.

Question

If you invest 5000 dollars today at a compound interest rate of 10 percent, compounded semi-annually, what will be
its future value after 5 years
Select one:
a. 8,052 dollars.
b. 8,000 dollars.
c. 8,144 dollars.
d. 2,500 dollars.
e. 7,500 dollars.

Video Video

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

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, finance and related others by exploring similar questions and additional content below.

Similar questions

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%
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%
If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
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. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
Suppose you are going to invest $11,000 per year for six years. The appropriate interest rate is 9 percent. What is the future value if the payments are made on the last day of the year? What if the payments are made on the first day of the year? a) $82,756.68; $90,204.78 b) $90,204.78; $82,756.68 c) $49,345.10; $53,786.16 d) $53,786.16; $49,345.10
Calculate the future value in five years of $5,000 received today if your investments pay. 6 percent compounded annually 8 percent compounded annually 10 percent compounded annually 10 percent compounded semiannually 10 percent compounded quarterly What do your answers to these questions tell you about the relation between future values and interest rates and between future values and the number of compounding periods per year?