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Unformatted text preview: 1A. (Compound interest) To what amount will the following investments accumulate? a. $5,000 invested for 10 years at 10 percent compounded annually b. $8,000 invested for 7 years at 8 percent compounded annually c. $775 invested for 12 years at 12 percent compounded annually d. $21,000 invested for 5 years at 5 percent compounded annually 5-4A. (Present value) What is the present value of the following future amounts? a. $800 to be received 10 years from now discounted back to the present at 10 percent b. $300 to be received 5 years from now discounted back to the present at 5 percent c. $1,000 to be received 8 years from now discounted back to the present at 3 percent d. $1,000 to be received 8 years from now discounted back to the present at 20 percent 5-5A. (Compound annuity) What is the accumulated sum of each of the following streams of payments5-5A....
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This note was uploaded on 02/09/2011 for the course FIN 2030 taught by Professor Baker during the Spring '11 term at Southeaster Oklahoma State University.
- Spring '11