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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

The way to answer this question is ... View the full answer

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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