PART 1 COMPOUND INTEREST a. In order to accumulate 20,000 on January 1, 2016 how much must be invested on January 1, 2011 at 6% compounded annually? b. What is the present worth of 200,00 payments at the end of the 14th and 15th year? The annual interest rate is 7%. c. If money is invested at 5 ½% compounded quarterly, find the present value of 20,500 due at the end of 3 years and 9 months?
PART 1 COMPOUND INTEREST a. In order to accumulate 20,000 on January 1, 2016 how much must be invested on January 1, 2011 at 6% compounded annually? b. What is the present worth of 200,00 payments at the end of the 14th and 15th year? The annual interest rate is 7%. c. If money is invested at 5 ½% compounded quarterly, find the present value of 20,500 due at the end of 3 years and 9 months?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PART 1 COMPOUND INTEREST
a. In order to accumulate 20,000 on January 1, 2016 how much must be invested on January 1, 2011 at 6% compounded annually?
b. What is the present worth of 200,00 payments at the end of the 14th and 15th year? The annual interest rate is 7%.
c. If money is invested at 5 ½% compounded quarterly, find the present value of 20,500 due at the end of 3 years and 9 months?
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