3. In five years, what is the future value of $4,000 if the interest rate is 10%

ID: 2639820 • Letter: 3

Question

3. In five years, what is the future value of $4,000 if the interest rate is 10% and money is compounded montly ? What is the future value if the money is compounded semiannually ?

4. Clark has an investment proposal that invites him to invest $1.000 a year for ten years in a hotel and promises to pay him a return of 11% per year. If Clark agrees, how much will his investment be worth at the end of ten years ?

5. What is the maximum amount of money you should pay for an investment today that is projected to yield $8,000 in four years if the market rate of interest is 12% and the money is compounded semiannually ? What would be the present value if the money is compounded monthly?

Explanation / Answer

3. In five years, what is the future value of $4,000 if the interest rate is 10% and money is compounded montly ? What is the future value if the money is compounded semiannually ?

future value = 4000*(1+10%/2)^(2*5)

future value = $ 6515.58

future value = 4000*(1+10%/12)^(12*5)

future value = $ 6581.24

Investment be worth at the end of ten years = fv(rate,nper,pmt,pv)

Investment be worth at the end of ten years = fv(11%,10,1000,0)

Investment be worth at the end of ten years = $ 16,722.01

Present value if the money is compounded monthly = $ 4962.08

Present value if the money is compounded semiannually = $ 5019.30

Navigate

3. In each of the situations below an \"experiment\" is conducted. Determine whe

3. In goats, a beard is produced by an autosomal allele that is domi- nant in ma

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

3. In five years, what is the future value of $4,000 if the interest rate is 10%

Question

Explanation / Answer

Related Questions

Navigate