1. Find the future value of today\'s $500 in 5 years under each of the following

Question

1. Find the future value of today's $500 in 5 years under each of the following conditions 5% nominal rate, annual compounding 8% nominal rate, annual compounding 10% nominal rate, annual compounding b. c. 2. Find the present value of $10,000 in 5 years under each of the following conditions 6% nominal rate, annual compounding 10% nominal rate, annual compounding 12% nominal rate, annual compounding b, c. 3. Find the present value of the following ordinary annuities $400 per year for 10 years at 10% $200 b. per year for 5 years at 5% c. $400 per year for 5 years at 3% 4. Find the future value of the following ordinary annuities $400 per year for 10 years at 10% $200 $400 b. per year for 5 years at 5% per year for 5 years at 3% c.

Explanation / Answer

1) a) Future value $ 638.14 =500*(1+5%)^5 b) Future value $ 734.66 =500*(1+8%)^5 c) Future value $ 805.26 =500*(1+10%)^5

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