Megan Brink is offered the possibility of investing $8,205 today at 9% interest per year in a desire to accumulate $15,000. How manyyears must Brink wait to accumulate $15,000? (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tablesprovided. Round your "PV of a single amount" to 4 decimal places and final answer to the nearest whole number.)Present ValueFuture ValueP (PV of a SingleAmount)Yearsyears Assume that you must estimate what the future value will be two years from today using the future value of 1 table. (PV of $1, EV of $1.PVA of $1, and FVA of $1)Which interest rate column and number-of-periods row do you use when working with the following rates? (Round percentageanswers to 2 decimal places.)Answer is complete but not entirely correct.Number of Periods1. 12% annual rate, compounded annually2.8% annual rate, compounded semiannually3. 12% annual rate, compounded quarterly4. 12% annual rate, compounded monthlyInterest Rate12.002.003.001.00%%%%28024

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Megan Brink is offered the possibility of investing $8,205 today at 9% interest per year in a desire to accumulate $15,000. How many years must Brink wait to accumulate $15,000? (PV of $1. EV of $1. PVA of S1, and EVA of 5) (Use appropriate factor(s) from the tables provided. Round your "PV of a single amount" to 4 decimal places and final answer to the nearest whole number.) Present Value Future Value p (PV of a Single Amount) Years years

Megan Brink is offered the possibility of investing $8,205 today at 9% interest per year in a desire to accumulate $15,000. How many years must Brink wait to accumulate $15,000? (PV of $1. EV of $1. PVA of S1, and EVA of 5) (Use appropriate factor(s) from the tables provided. Round your "PV of a single amount" to 4 decimal places and final answer to the nearest whole number.) Present Value Future Value p (PV of a Single Amount) Years years

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Compute the interest rate if future value (FV) = $7,198, present value (FV) = $2,694, and number of years (t) = 9. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
Use factors and a spreadsheet to determine the interest rate per period from the following equation: 0=-36,000+8,000 (P/A,i*,5) + 8,000 (P/F,i*,8) (Round the final answer to three decimal places.) The interest rate per period is | %.
Compute the number of years (t) if future value (FV) = $6,636, present value (FV) = $1,895, and interest rate (r) = 11.6%,. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
Compute the present value if future value (FV) = $7,745, interest rate (r) = 8.1%, and number of years (t) = 11. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
Use factors and a spreadsheet to determine the interest rate per period from the following equation: 0 = -26,000 + 8,000(P/A,i∗,5) + 8,000(P/F,i∗,8) What is the interest rate per period? %
For each of the following situations involving annulties, solve for the unknown. Assume that interest is compounded annually and that all annulty amounts are received at the end of each period. (/= Interest rate, and n = number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. 5. Present Value 248, 196 442,750 650,000 175,000 Annuity Amount $ 5,000 80,000 60,000 155,040 8% 11% 10% n = 5 4 10 4
Use factors (from the tables) or a spreadsheet to determine the interest rate per period from the following equation: 0 = −40,000 + 8000(P/A,i*,8) + 8000(P/F,i*,10)
For each of the following cases, indicate (a) to what interest rate columns and (b) what number of periods you would refer to in looking up the future value factor. (1) In Table 1 (future value of 1): \table||,Annual Rate, \table[[Number of], [Years Invested]], Compounded], [Case A,5%,5, Annually], [Case 8,8%, 4, Semiannually]]\ table[(a)..(b)], [Case A,%, periods,], [Case B,%, periods,,]] (2) In Table 2 (future value of an annuity of 1): \ table[],Annual Rate,\table[[Number of], [Years Invested]], Compounded], [Case A,4%, 12, Annually), (Case B,6%, 5,Semiannually]] \table[[,(a), (b)].[..%,periods], [Case A,%, periods,]]
Calculate the present value of the following annulties, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of S1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) \table[[, \table[[Annuity], [Payment]], \table [[ Annual], [Rate]], \table[[Interest], [Compounded]], \table [[Period], [Invested]], \table [[Present Value of], [ Annuity]]], [1., $5,000, 7.0%, Semiannually,3 years,], [2., 10, 000, 8.0%, Quarterly,2 years, ], [3., 4,000, 10.0 %, Annually,5 years,]]
Construct a spreadsheet to convert a nominal interest rate compounded m times per year i(m) and convert it to an effective rate jn per 1/n of a year. On the same spreadsheet, also start with an effective rate jm per 1/m of a year and convert it to a nominal rate i(n) compounded n times per year. Use your spreadsheet to solve the following two problems: Given the nominal rate i(12) = 5.700%, find the equivalent effective semi-annual rate. Given the effective semi-annual rate j2 = 2.884%, find the equivalent nominal rate ¡(12).
Use factors and a spreadsheet to determine the interest rate per period from the following equation: 0 = -32,000 + 8, 000 (P/A,i*,5) + 8, 000 (P/F,ï* ,8) The interest rate per period is %.
For each of the following cases, indicate (a) to what interest rate columns and (b) what number of periods you would refer to in looking up the future value factor. (1) In Table 1 (future value of 1): Case A Case B Case A Case B Case A Case B Case A Annual Rate Case B 5% 8% Annual Rate (2) In Table 2 (future value of an annuity of 1): 6% (a) 4% Number of Years Invested (a) 3 6 % 11 % Number of Years Invested 7 % Compounded Annually Semiannually (b) Compounded Annually Semiannually (b) periods periods periods periods

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