You invest $4,400 for three years at 9 percent. a. What is the value of your inv

Question

You invest $4,400 for three years at 9 percent.

a. What is the value of your investment after one year? Multiply $4,400 × 1.09.
  

  
b. What is the value of your investment after two years? Multiply your answer to part a by 1.09. (Round your answer to 2 decimal places.)
  

  
c. What is the value of your investment after three years? Multiply your answer to part b by 1.09. This gives your final answer. (Round your answer to 2 decimal places.)
  

What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods.

d. $8,300 in 10 years at 9 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
  

e. $17,000 in 5 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
  

f. $26,700 in 14 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
  

Explanation / Answer

a) Value of Investment after 1 year = 4400* (1+9%) = 4796

b)Value of Investment after 2 years = 4400* (1+9%) *(1+9%) = 5227.64

c) Value of Investment after3 year = 4400* (1+9%)^3 = 5698.13

d) Amount = 8300, Time = 10 Years, Rate = 9%

PV = Amount /(1+r)n = 8300/(1+9%)10 = 3506.01

e) Amount = 1700, Time = 5 Years, Rate = 8%

PV = Amount /(1+r)n = 17000/(1+8%)5 = 11569.91

f) Amount = 26700, Time = 14 Years, Rate = 7%

PV = Amount /(1+r)n = 26700/(1+7%)14 = 10354.72

Best of Luck. God Bless
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