1Asug ?. / × Chapter 14 Lablities: Be v2cengagenow.com/firn/tak Assignment/takeA

Question

1Asug ?. / × Chapter 14 Lablities: Be v2cengagenow.com/firn/tak Assignment/takeAssignmentMain.do?inwoker assignments&ctakeAssig; Using the future value tables, sove the following Click here to access the tme value of money tables to use with this problem Round yeur ansivers to twe decimal places Required 1. what is the future value on December 31. 2020, ee·depose of S35.000 made on January 1, 2017, assuming interest of 10% compounded annually? 2. What is the future value on December 31. 2020, of a depesit of $0.000 made on January . 2017, asauming interest of 165 compeunded quartery 3. what th-future val . on December 21. 2020' gf . dapat cf S25.000 made on January 1, 2017, assumng interest-12% consunded senamu.ly? Th. future vou* of . single sum isthe ongnal sum pu·th* compound-merest, measured a. of a "sechc ture date. Compounding converts . The follewing questions can help you sith Tima Value of Menay uesons whan do the cash fiouis becur Hoe much ars the cash Rov many times s what is the annual interest rate

Explanation / Answer

Answer to Question A:

Answer 1.

Amount invested = $35,000
Annual Interest = 10%

Future Value = $35,000 * FV of $1 (10%, 4)
Future Value = $35,000 * 1.4641
Future Value = $51,243.50

Answer 2.

Amount invested = $10,000
Annual Interest Rate = 16%
Quarterly Interest Rate = 4%

Future Value = $10,000 * FV of $1 (4%, 16)
Future Value = $10,000 * 1.8730
Future Value = $18,730.00

Answer 3.

Amount invested = $25,000
Annual Interest Rate = 12%
Semi-annual Interest Rate = 6%

Future Value = $25,000 * FV of $1 (6%, 8)
Future Value = $25,000 * 1.5938
Future Value = $39,845.00

Answer to Question B:

Answer 1.

Amount due on January 1, 2020 = $30,000
Annual Discount Rate = 10%

Present Value = $30,000 * PV of $1 (10%, 4)
Present Value = $30,000 * 0.6830
Present Value = $20,490.00

Answer 2.

Amount due on January 1, 2020 = $40,000
Annual Discount Rate = 11%
Semi-annual Discount Rate = 5.5%

Present Value = $40,000 * PV of $1 (5.50%, 8)
Present Value = $40,000 * 0.6516
Present Value = $26,064.00

Answer 3.

Amount due on January 1, 2020 = $50,000
Annual Discount Rate = 16%
Quarterly Discount Rate = 4%

Present Value = $50,000 * PV of $1 (4%, 16)
Present Value = $50,000 * 0.5339
Present Value = $26,695.00

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.