1 How much do you need to invest today in order to have $11,986 at the end of 15
ID: 2684548 • Letter: 1
Question
1 How much do you need to invest today in order to have $11,986 at the end of 15 yrs if you are sure to earn an interest at the rate of 12% 2 How many yrs it will take you to quadruple your money if you can earn 1395% each year 3 What is the FV of $2,764 invested for 11 yrs at 13% if interest is compounded quarterly 4 Assume interest rate of 9% A company receives cash flows of $79,882 at the end of yrs 4, 5, 6, 7, and 8, and cash flows of $200,820 at the end of year 10 5 How much do you need to invest today in order to have $3,395 at the end of 16 yrs if you are sure to earn an interest at the rate of 14%, if interest is compounded quarterly 6 Assume interest rate of 9% Suppose that you receive $94,452 at the end of each year for 4 yrs Suppose that this cash flow starts at the end of the fourth year Compute the PVExplanation / Answer
1 How much do you need to invest today in order to have $11,986 at the end of 15 yrs if you are sure to earn an interest at the rate of 12%
1. $2,189.80
2 How many yrs it will take you to quadruple your money if you can earn 1395% each year
. 10.62 years
3 What is the FV of $2,764 invested for 11 yrs at 13% if interest is compounded quarterly
$11,290.18
4 Assume interest rate of 9% A company receives cash flows of $79,882 at the end of yrs 4, 5, 6, 7, and 8, and cash flows of $200,820 at the end of year 10
$768,815.74
5 How much do you need to invest today in order to have $3,395 at the end of 16 yrs if you are sure to earn an interest at the rate of 14%, if interest is compounded quarterly
$375.54
6 Assume interest rate of 9% Suppose that you receive $94,452 at the end of each year for 4 yrs Suppose that this cash flow starts at the end of the fourth year Compute the PV
$236,286.62
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