Time Value of Money Problems Calculate the present value of the following invest
ID: 2716807 • Letter: T
Question
Time Value of Money Problems
Calculate the present value of the following investment: (a) Future Value: $123,000, (b) Number of Periods: 10, and (c) Interest Rate: 6%.
Calculate the future value of the following investment: (a) Present Value: $12,000, (b) Number of Periods: 13, and (c) Interest Rate: 4%.
Calculate the number of periods for the following investment: (a) Present Value: $30,000, (b) Future Value: $98,328, and (c) Interest Rate: 6%.
Calculate the Interest Rate for the following investment: (a) Present Value: $12,000, (b) Future Value: $25,000, and (c) Number of Periods: 14.
Explanation / Answer
Calculate the present value of the following investment: (a) Future Value: $123,000, (b) Number of Periods: 10, and (c) Interest Rate: 6%.
Present value of the following investment = Future Value/(1+r)^n
Present value of the following investment = 123000/(1+6%)^10
Present value of the following investment = $ 68,682.56
Calculate the future value of the following investment: (a) Present Value: $12,000, (b) Number of Periods: 13, and (c) Interest Rate: 4%.
Future value of the following investment = Present Value*(1+r)^n
Future value of the following investment = 12000*(1+4%)^13
Future value of the following investment = $ 19,980.88
Calculate the number of periods for the following investment: (a) Present Value: $30,000, (b) Future Value: $98,328, and (c) Interest Rate: 6%.
Number of periods for the following investment = nper(rate,pmt,pv,fv)
Number of periods for the following investment = nper(6%,0,-30000,98328)
Number of periods for the following investment = 20.37 Years
Calculate the Interest Rate for the following investment: (a) Present Value: $12,000, (b) Future Value: $25,000, and (c) Number of Periods: 14.
Interest Rate for the following investment = (Future Value/Present Value)^(1/n) - 1
Interest Rate for the following investment = (25000/12000)^(1/14) - 1
Interest Rate for the following investment = 5.38%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.