a.
To Calculate:
Concept Introduction:Future Valueis a value of a present amount on some future date. When present sum increases due to interest rate then that interest plus principle is called as future value. It is calculated by multiplying the future value of rupee 1 to the
b.
To Calculate: Future value of (b).
Concept Introduction:Future Valueis a value of a present amount on some future date. When present sum increases due to interest rate then that interest plus principle is called as future value. It is calculated by multiplying the future value of rupee 1 to the present value.
c.
To Calculate: Future value of (c).
Concept Introduction:Future Valueis a value of a present amount on some future date. When present sum increases due to interest rate then that interest plus principle is called as future value. It is calculated by multiplying the future value of rupee 1 to the present value.
Trending nowThis is a popular solution!
Chapter 1 Solutions
Personal Finance Tax Update
- The present value of $77,000 to be received in 2 years, at 12% compounded annually, is (rounded to nearest dollar)Use the present value table in Exhibit 8.arrow_forwardDetermine the present value if $5,000 is received in the future (that is ,at the end of each indicated time period ) in each of the following situations: 5% of 10 yearsarrow_forwardCompute the future value of $2,500 continuously compounded for 5 years at an APR of 11 percent. b. Compute the future value of $2,500 continuously compounded for 4 years at an APR of 12 percent. c. Compute the future value of $2,500 continuously compounded for 11 years at an APR of 6 percent. d. Compute the future value of $2,500 continuously compounded for 10 years at an APR of 8 percent.arrow_forward
- What is the Present Value of $500 received in eight years with an interest rate of 8 percent? Please show formula as wellarrow_forwardWhat is the present value of $2,000 received today, $2,500 received at the end of each of the next ten years and $1,000 received at the end of the 11th year , assuming a required rate of return of 6%?arrow_forwardIf you borrow $15,500 with a 5 percent interest rate to be repaid in seven equal payments at the end of the next seven years, what would be the amount of each payment? Use Exhibit 1 - D. (Round your PVA factor to 3 decimal places and final answer to 2 decimal places.)arrow_forward
- Find the present value of the following future amount. $500,000 at 9% compounded annually for 25 years What is the present value? $ (Round to the appropriate cent.)arrow_forwardSuppose 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; $49,345.10arrow_forward(1) calculate the future value if $6,000 is deposited initially at 11% annual interest for 5 years.arrow_forward
- The present value of $30,000 to be received in 5 years at an interest rate of 16%, compounded annually, is $14,283.Required:Using a present value table (Table 6-4 and Table 6-5), calculate the present value of $30,000 for each of the following items (parts a—f) using these facts: (Use the appropriate value(s) from the tables provided. Round your PV factors to 4 decimal places and final answers to the nearest whole dollar.)a. Interest is compounded semiannually. b. Interest is compounded quarterly. c. A discount rate of 14% is used. d. A discount rate of 20% is used. e. The cash will be received in 3 years. f. The cash will be received in 7 years.arrow_forwardFind the present value that will generate the future value of $3,373 at 11 1/4% compounded quarterly for 5 years. (Give your answer to the nearest cent.)P = $arrow_forwardFind the future value of $1,800 in 3 years at 8%.arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT