Correct answer If you invest $5,000 at an annual interestrate of 6% compounded annually, whatwill be the value of your investmentafter 5 years?a) $6,691.13b) $6,500.00c) $7,012.85d) $6,802.44

Formula for compound interest:A=P(1+nr)ntWhere:A is the amount of money accumulated after n years,…

Answered: If you invest $5,000 at an annual…

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....

See similar textbooks

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%
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%
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?
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%
If you invest $5,000 at an annual interest rate of 6% compounded annually, what will be the value of your investment after 5 years? a) $6,691.13 b) $6,500.00 c) $7,012.85 d) $6,802.44
4. If you invest $10,000 today at an interest rate of 7% for 5 years, what is the present value of your investment? A) $7,957.62 B) $8,000 C) $10,000 D) $7,632.37 Show Calculation here:
If you invest $1,000 at an annual interest rate of 5% compounded annually, how much will you have after 3 years? a) $1,150.00 b) $1,157.63 c) $1,162.89 d) $1,175.25
If you invest $18,000 at 6% interest, how much will you have in 15 years? Use Appendix A to calculate the answer. a) $25,506 b) $43,146 c) $7,506 d) $97,918
How much will you pay for an investment if you expect to receive $7.000 end of each years for 5 years and if the appropriate interest rate is 4.5%? $27,831.47 $29,851.84 O $29,083.89 O $30,729.84 $38,294.97 O $8,723.27
Want correct answer
You plan to invest $50,000 today at an annual interest rate of 12% over 5 years. What the future value of your investment if interest is compounded. a. Annually b. Semi-annually

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

Personal Finance

Finance

ISBN:

9781337669214

Author:

GARMAN

Publisher:

Cengage

SEE MORE TEXTBOOKS

If you invest $5,000 at an annual interest rate of 6% compounded annually, what will be the value of your investment after 5 years? a) $6,691.13 b) $6,500.00 c) $7,012.85 d) $6,802.44