Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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%

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote