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Prob 9-1 Find the future value one year from now of a $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future value...

Prob 9-1 Find the future value one year from now of a $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future
value if the investment is made for two years.

FV one year
FV two years
Sum of FV's


Prob 9-2
Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent.

a. What would be the future value if the interest rate is a simple interest rate?

FV using simple interest

b. What would be the future value if the interest rate is a compound interest rate?

FV using compound interest


Prob 9-5 Find the present value of $7,000 to be received one year from now assuming a 3 percent annual discount interest rate. Also calculate
the present value if the $7,000 is received after two years.

PV received one year from now
PV received two years from now


Prob 9-10 Determine the present value now of an investment of $3,000 made one year from now and an additional $3,000 made two years
from now if the annual discount rate is 4 percent.


PV one year from now
PV two years from now


Prob 9-20 Use a financial calculator or computer software program to answer the following questions.

a. What is the present value of $359,000 that is to be received at the end of twenty-three years, the discount rate is 11 percent,
and semiannual discounting occurs?

PV w/ semi-annual discounting


b. How would your answer for (a) change if monthly discounting were used?

PV w/ monthly discounting
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8419732.xlsx

Prob 9-1 Find the future value one year from now of a $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future
value if the investment is made for two years.
FV one...

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