Problem 1: Calculating Future Values. For each of the following, compute the future value: Present Value ($) [Years Interest Rate Future Value($) 3680 9740 86399 5 20% 6% 10% 4% 10 15 565000 20

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Ch 5A Questions
Problem 1: Calculating Future Values. For each of the following, compute the future value:
Present Value ($) Years Interest Rate Future
Value($)
20%
6%
10%
4%
3680
5
9740
10
86399
15
565000
20
Problem 2: Calculating Present Values. For each of the following, compute the present valu
Present Value ($) Years Interest Rate Future Value($)
4%
8%
7
999
1999
17
16%
11999
23
32%
111999
Problem 3: Calculating Interest Rates For each of the following, solve for the unknown intere
rate:
Future Value($)
Present Value ($) Years Interest
Rate(%)
300
4
400
350
10
900
36000
16
90000
67000
29
2000000
Transcribed Image Text:Ch 5A Questions Problem 1: Calculating Future Values. For each of the following, compute the future value: Present Value ($) Years Interest Rate Future Value($) 20% 6% 10% 4% 3680 5 9740 10 86399 15 565000 20 Problem 2: Calculating Present Values. For each of the following, compute the present valu Present Value ($) Years Interest Rate Future Value($) 4% 8% 7 999 1999 17 16% 11999 23 32% 111999 Problem 3: Calculating Interest Rates For each of the following, solve for the unknown intere rate: Future Value($) Present Value ($) Years Interest Rate(%) 300 4 400 350 10 900 36000 16 90000 67000 29 2000000
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