Using the compound interest tables, answer each of the following questions.
?
Required:
a.What is the present value on January 1, 2014, of $50,000 due on January 1, 2020, and discounted at 7% compounded annually?b.What is the present value on January 1, 2014, of $8,000 due on January 1, 2022, and discounted at 10% compounded semiannually?
What will be an ideal response?
| a. | PV | = FV× (fn = 6, i = 7%) |
| = $50,000 × 0.666342 | ||
| = $33,317 | ||
| b. | PV | = FV× (fn = 16, i = 5%) |
| = $8,000 × 0.458112 | ||
| = $3,665 |
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Using the compound interest tables, answer the following questions. Required: a.What amount of interest will be earned on an investment of $10,500 left on deposit by Marcy for three years at 9% interest compounded annually?b.Travis deposited $10,000 in a fund that earns 8% interest compounded annually. How many years will it take for the fund to grow to $21,589.25?
What will be an ideal response?
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A. n + 1 and then subtract 1. B. n? 1 and then subtract 1. C. n + 1 and then add 1. D. n? 1 and then add 1.
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A. False B. True
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What will be an ideal response?