TVM SINGLE PAYMENT

TVM SINGLE PAYMENT - Time Value of Money SINGLE PAYMENT 1....

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Time Value of Money SINGLE PAYMENT 1. What is the future value of $500 if it is invested in an account for 30 years and earns an Annual Percentage Rate of 15% compounded annually 2. What is the future value of $500 if it is invested in an account for 30 years and earns an Annual Percentage Rate of 15% compounded monthly? 3. What is the inflation-adjusted interest rate if the interest rate is 12% and the inflation rate is 3.5%? 4. What is the present value of $1,000,000 brought back from the future 5 years at a discount rate of 6%? 5. Elisabeth graduated high school at age 18. Her grandparents gave her a check for $1,000 when she graduated. She immediately deposited that check into a savings account at her bank. The savings account earns an Annual Percentage Rate (APR) of 2% compounded annually. Elisabeth has now graduated from college at age 23. Tomorrow, she plans on withdrawing the financial gift from her grandparents as well as any compounded interest it has earned. How much is in that savings account? 6.
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This note was uploaded on 06/06/2011 for the course HACE 3200 taught by Professor B during the Spring '09 term at UGA.

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TVM SINGLE PAYMENT - Time Value of Money SINGLE PAYMENT 1....

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