C use arrows to demonstrate on the time line in part

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Unformatted text preview: ble. Compare the calculated value to the value in Appendix Table A–1. Case 12% 2 B 6 3 C 9 2 D 4–3 Number of periods, n A LG2 Interest rate, i 3 4 Future value tables Use the future value interest factors in Appendix Table A–1 in each of the cases shown in the following table to estimate, to the nearest year, how long it would take an initial deposit, assuming no withdrawals, a. To double. b. To quadruple. Case A Interest rate 7% B 4–4 20 D LG2 40 C 10 Future values For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today that will be available at the end of the deposit period if the interest is compounded annually at the rate specified over the given period. CHAPTER 4 Case A Single cash flow $ 200 Interest rate 5% Time Value of Money 173 Deposit period (years) 20 B 4,500 8 7 C 10,000 9 10 D 25,000 10 12 E 37,000 11 5 F 40,000 12 9 LG2 4–5 Future value You have $1,500 to invest today at 7% interest compounded annually...
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This document was uploaded on 03/03/2014 for the course MBA BMMF at Open University Malaysia.

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