Description
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- What will $ 150,000 grow to be in 10 years if it is invested today in an account with a quoted annual interest rate of 9% with monthly compounding of interest?
- How many years will it take for $345,000 to grow to be $764,000 if it is invested in an account with a quoted annual interest rate of 10% with monthly compounding of interest?
- At what quoted annual interest rate must $ 198,000 be invested so that it will grow to be $450,000 in 19 years if interest is compounded weekly?
- You are offered an investment with a quoted annual interest rate of 19% with quarterly compounding of interest. What is your effective annual interest rate?
- You are offered an annuity that will pay $34,000 per year for 12 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 11%, what is the annuity worth to you today?
- If you deposit $14,000 per year for 11 years (each deposit is made at the end of each year) in an account that pays an annual interest rate of 12%, what will your account be worth at the end of 10 years?
- You plan to borrow $423,000 now and repay it in 20 equal annual installments (payments will be made at the end of each year). If the annual interest rate is 10%, how much will your annual payments be?
- You are told that if you invest $ 10,000 per year for 22 years (all payments made at the end of each year) you will have accumulated $321,000 at the end of the period. What annual rate of return is the investment offering?
- You are offered an annuity that will pay $15,000 per year for 2 years (the first payment will be made today). If you feel that the appropriate discount rate is 9%, what is the annuity worth to you today?
- If you deposit $ 10,000 per year for 12 years (each deposit is made at the beginning of each year) in an account that pays an annual interest rate of 10%, what will your account be worth at the end of 10 years?
Explanation & Answer
Here is the answer. Thanks
PV of Investment
Total Term (in Years)
Interest Rate (Annual)
Compounding Period (In a Year)
FV of Investment
$
150.000
10
9%
12
$367.703,56
If $150000 is invested today for 10 years with 9% annual interest (with montly compounding) it will
grow to $367703.56.
PV of Investment
FV of Investment
Interest Rate (Annual)
Compounding Period (In a Year)
Total Maturity (in Years)
$ 345.000
$ 764.000
10,00%
12
7,98
It will take 7.98 years, for $345,000 growing to $764,000 with ...