webcourses.ucf.edu What Is The Future Value Ot iz 5 Time Value of Money: GEB3006
ID: 2798108 • Letter: W
Question
webcourses.ucf.edu What Is The Future Value Ot iz 5 Time Value of Money: GEB3006-17Fall ORO1 orrect Answer $40,082.66 $38,771.52 Unanswered Question2 0/1 pts What is the present value of $13,500 received 5 years from now using a 16% interest or discount rate, with interest compounded daily? $5,230.18 Correct Answer $6,067.00 $30,039.54 $6,161.22 $6,223.44 Unanswered 0/1 pts What is the future value of $3,500 deposited at the beginning of each year for 5 years earning 6% interest compounded annually?Explanation / Answer
We use the formula:
A=P(1+r/365)^365n
where
A=future value
P=present value
r=rate of interest
n=time period.
13500=P(1+0.16/365)^(365*5)
P=13500/(1+0.16/365)^(365*5)
=$13500/2.225150845
which is equal to
=$6067(Approx)
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