Future value is the value of present money after a period of time. Future value of present money is calculated using the interest rate and period. The present value of a sum is multiplied with the future value factor to get the future value. To identify: the interest rate column and number of period.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter B, Problem 1QS

Summary Introduction

Concept Introduction:

Future value is the value of present money after a period of time. Future value of present money is calculated using the interest rate and period. The present value of a sum is multiplied with the future value factor to get the future value.

To identify: the interest rate column and number of period.

Expert Solution & Answer

Explanation of Solution

Rate	Interest rate	Number of period
12% annual rate, compounded annually	12%	1	The compounding is annual, hence the rate shall remain same and period shall be 1.
6% annual rate, compounded semiannually	3%	2	The compounding is semiannual, hence the rate shall be half and period shall be double.
8% annual rate, compounded quarterly	2%	4	The compounding is quarterly, hence the rate shall be one fourth and period shall be four times.
12% annual rate, compounded monthly	1%	12	The compounding is monthly, hence the rate shall be divided by 12 and period shall be multiplied by 12.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

financial accounting an

How much overhead was applied to each job in year 2 ?

Hello teacher find correct answer

Answer 2

Question

Chapter B, Problem 1QS

Summary Introduction

Concept Introduction:

Future value is the value of present money after a period of time. Future value of present money is calculated using the interest rate and period. The present value of a sum is multiplied with the future value factor to get the future value.

To identify: the interest rate column and number of period.

Expert Solution & Answer

Explanation of Solution

Rate	Interest rate	Number of period
12% annual rate, compounded annually	12%	1	The compounding is annual, hence the rate shall remain same and period shall be 1.
6% annual rate, compounded semiannually	3%	2	The compounding is semiannual, hence the rate shall be half and period shall be double.
8% annual rate, compounded quarterly	2%	4	The compounding is quarterly, hence the rate shall be one fourth and period shall be four times.
12% annual rate, compounded monthly	1%	12	The compounding is monthly, hence the rate shall be divided by 12 and period shall be multiplied by 12.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter B, Problem 1QS

Summary Introduction

Concept Introduction:

Future value is the value of present money after a period of time. Future value of present money is calculated using the interest rate and period. The present value of a sum is multiplied with the future value factor to get the future value.

To identify: the interest rate column and number of period.

Expert Solution & Answer

Explanation of Solution

Rate	Interest rate	Number of period
12% annual rate, compounded annually	12%	1	The compounding is annual, hence the rate shall remain same and period shall be 1.
6% annual rate, compounded semiannually	3%	2	The compounding is semiannual, hence the rate shall be half and period shall be double.
8% annual rate, compounded quarterly	2%	4	The compounding is quarterly, hence the rate shall be one fourth and period shall be four times.
12% annual rate, compounded monthly	1%	12	The compounding is monthly, hence the rate shall be divided by 12 and period shall be multiplied by 12.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter B, Problem 1QS

Summary Introduction

Concept Introduction:

Future value is the value of present money after a period of time. Future value of present money is calculated using the interest rate and period. The present value of a sum is multiplied with the future value factor to get the future value.

To identify: the interest rate column and number of period.

Expert Solution & Answer

Explanation of Solution

Rate	Interest rate	Number of period
12% annual rate, compounded annually	12%	1	The compounding is annual, hence the rate shall remain same and period shall be 1.
6% annual rate, compounded semiannually	3%	2	The compounding is semiannual, hence the rate shall be half and period shall be double.
8% annual rate, compounded quarterly	2%	4	The compounding is quarterly, hence the rate shall be one fourth and period shall be four times.
12% annual rate, compounded monthly	1%	12	The compounding is monthly, hence the rate shall be divided by 12 and period shall be multiplied by 12.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter B, Problem 1QS

Summary Introduction

Concept Introduction:

Future value is the value of present money after a period of time. Future value of present money is calculated using the interest rate and period. The present value of a sum is multiplied with the future value factor to get the future value.

To identify: the interest rate column and number of period.

Expert Solution & Answer

Explanation of Solution

Rate	Interest rate	Number of period
12% annual rate, compounded annually	12%	1	The compounding is annual, hence the rate shall remain same and period shall be 1.
6% annual rate, compounded semiannually	3%	2	The compounding is semiannual, hence the rate shall be half and period shall be double.
8% annual rate, compounded quarterly	2%	4	The compounding is quarterly, hence the rate shall be one fourth and period shall be four times.
12% annual rate, compounded monthly	1%	12	The compounding is monthly, hence the rate shall be divided by 12 and period shall be multiplied by 12.

Answer 6

Chapter B, Problem 1QS

Summary Introduction

Concept Introduction:

Future value is the value of present money after a period of time. Future value of present money is calculated using the interest rate and period. The present value of a sum is multiplied with the future value factor to get the future value.

To identify: the interest rate column and number of period.

Expert Solution & Answer

Explanation of Solution

Rate	Interest rate	Number of period
12% annual rate, compounded annually	12%	1	The compounding is annual, hence the rate shall remain same and period shall be 1.
6% annual rate, compounded semiannually	3%	2	The compounding is semiannual, hence the rate shall be half and period shall be double.
8% annual rate, compounded quarterly	2%	4	The compounding is quarterly, hence the rate shall be one fourth and period shall be four times.
12% annual rate, compounded monthly	1%	12	The compounding is monthly, hence the rate shall be divided by 12 and period shall be multiplied by 12.

Answer 7

Chapter B, Problem 1QS

Summary Introduction

Concept Introduction:

Future value is the value of present money after a period of time. Future value of present money is calculated using the interest rate and period. The present value of a sum is multiplied with the future value factor to get the future value.

To identify: the interest rate column and number of period.

Answer 8

Expert Solution & Answer

Explanation of Solution

Rate	Interest rate	Number of period
12% annual rate, compounded annually	12%	1	The compounding is annual, hence the rate shall remain same and period shall be 1.
6% annual rate, compounded semiannually	3%	2	The compounding is semiannual, hence the rate shall be half and period shall be double.
8% annual rate, compounded quarterly	2%	4	The compounding is quarterly, hence the rate shall be one fourth and period shall be four times.
12% annual rate, compounded monthly	1%	12	The compounding is monthly, hence the rate shall be divided by 12 and period shall be multiplied by 12.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. B - Prob. 1QS Ch. B - Prob. 2QS Ch. B - Prob. 3QS Ch. B - Prob. 4QS Ch. B - Prob. 5QS Ch. B - Prob. 6QS Ch. B - Prob. 7QS Ch. B - Prob. 1E Ch. B - Prob. 2E Ch. B - Prob. 3E

Explanation of Solution

Want to see more full solutions like this?

Chapter B Solutions