Future value : Future value refers to that value of an investment which will worth at a specified time in future. In simple words, expression of current investment in future dollars on basis of particular rate of interest is known as future value. Interest on interest It refers to that amount of interest which is calculated on the interest received from the invested amount. The difference between actual investment and its future value includes interest and interest on interest. So, if the amount of interest will be deducted from the difference of actual investment and its future value, it will show only interest on interest. To determine: Calculate the future value of $2,000 in 5 years at an interest rate of 5% per year. Calculate the future value of $2,000 in 10 years at an interest rate of 5% per year. Calculate the future value of $2,000 in 5years at an interest rate of 10% per year. Reason behind the amount of interest in (a) is less than half the interest earned in

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Answer 1

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Chapter 3, Problem 19P

Summary Introduction

Future value:

Future value refers to that value of an investment which will worth at a specified time in future. In simple words, expression of current investment in future dollars on basis of particular rate of interest is known as future value.

Interest on interest

It refers to that amount of interest which is calculated on the interest received from the invested amount. The difference between actual investment and its future value includes interest and interest on interest. So, if the amount of interest will be deducted from the difference of actual investment and its future value, it will show only interest on interest.

To determine:

Calculate the future value of $2,000 in 5 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 10 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 5years at an interest rate of 10% per year.

Reason behind the amount of interest in (a) is less than half the interest earned in

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Answer 2

Question

Chapter 3, Problem 19P

Summary Introduction

Future value:

Future value refers to that value of an investment which will worth at a specified time in future. In simple words, expression of current investment in future dollars on basis of particular rate of interest is known as future value.

Interest on interest

It refers to that amount of interest which is calculated on the interest received from the invested amount. The difference between actual investment and its future value includes interest and interest on interest. So, if the amount of interest will be deducted from the difference of actual investment and its future value, it will show only interest on interest.

To determine:

Calculate the future value of $2,000 in 5 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 10 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 5years at an interest rate of 10% per year.

Reason behind the amount of interest in (a) is less than half the interest earned in

Expert Solution & Answer

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Answer 3

Question

Chapter 3, Problem 19P

Summary Introduction

Future value:

Future value refers to that value of an investment which will worth at a specified time in future. In simple words, expression of current investment in future dollars on basis of particular rate of interest is known as future value.

Interest on interest

It refers to that amount of interest which is calculated on the interest received from the invested amount. The difference between actual investment and its future value includes interest and interest on interest. So, if the amount of interest will be deducted from the difference of actual investment and its future value, it will show only interest on interest.

To determine:

Calculate the future value of $2,000 in 5 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 10 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 5years at an interest rate of 10% per year.

Reason behind the amount of interest in (a) is less than half the interest earned in

Expert Solution & Answer

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Answer 4

Question

Chapter 3, Problem 19P

Summary Introduction

Future value:

Future value refers to that value of an investment which will worth at a specified time in future. In simple words, expression of current investment in future dollars on basis of particular rate of interest is known as future value.

Interest on interest

It refers to that amount of interest which is calculated on the interest received from the invested amount. The difference between actual investment and its future value includes interest and interest on interest. So, if the amount of interest will be deducted from the difference of actual investment and its future value, it will show only interest on interest.

To determine:

Calculate the future value of $2,000 in 5 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 10 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 5years at an interest rate of 10% per year.

Reason behind the amount of interest in (a) is less than half the interest earned in

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 19P

Summary Introduction

Future value:

Future value refers to that value of an investment which will worth at a specified time in future. In simple words, expression of current investment in future dollars on basis of particular rate of interest is known as future value.

Interest on interest

It refers to that amount of interest which is calculated on the interest received from the invested amount. The difference between actual investment and its future value includes interest and interest on interest. So, if the amount of interest will be deducted from the difference of actual investment and its future value, it will show only interest on interest.

To determine:

Calculate the future value of $2,000 in 5 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 10 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 5years at an interest rate of 10% per year.

Reason behind the amount of interest in (a) is less than half the interest earned in

Answer 6

Chapter 3, Problem 19P

Summary Introduction

Future value:

Future value refers to that value of an investment which will worth at a specified time in future. In simple words, expression of current investment in future dollars on basis of particular rate of interest is known as future value.

Interest on interest

It refers to that amount of interest which is calculated on the interest received from the invested amount. The difference between actual investment and its future value includes interest and interest on interest. So, if the amount of interest will be deducted from the difference of actual investment and its future value, it will show only interest on interest.

To determine:

Calculate the future value of $2,000 in 5 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 10 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 5years at an interest rate of 10% per year.

Reason behind the amount of interest in (a) is less than half the interest earned in

Answer 7

Chapter 3, Problem 19P

Summary Introduction

Future value:

Future value refers to that value of an investment which will worth at a specified time in future. In simple words, expression of current investment in future dollars on basis of particular rate of interest is known as future value.

Interest on interest

It refers to that amount of interest which is calculated on the interest received from the invested amount. The difference between actual investment and its future value includes interest and interest on interest. So, if the amount of interest will be deducted from the difference of actual investment and its future value, it will show only interest on interest.

To determine:

Calculate the future value of $2,000 in 5 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 10 years at an interest rate of 5% per year.

Calculate the future value of $2,000 in 5years at an interest rate of 10% per year.

Reason behind the amount of interest in (a) is less than half the interest earned in

Answer 8

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Answer 11

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