FIN 100 Week 4 Homework Latest

  

FIN100 Week 4 Homework

Question 1

Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. What would be the future value if the interest rate is a simple interest rate?

  

$14,000

 

$14,200

 

$16,000

 

$11,000

Question 2

Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. What would be the future value if the interest rate is a compound interest rate?

  

$14,590

 

$14,690

 

$16,690

 

$13,960

Question 3

Determine the future values if $5,000 is invested in each of the following situations:

· 5 percent for ten years

  

$8,145

 

$7,145

 

$6,145

 

$7,415

Question 4

Determine the future value if $5,000 is invested in each of the following situations:

· 7 percent for seven years

  

$8,130

 

$8,031

 

$8,030

 

$7,030

Question 5

Determine the future value if $5,000 is invested in each of the following situations:

· 9 percent for four years

  

$7,260

 

$7,620

 

$7,062

 

$7,060

Question 6

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.

  

$6,796.12 and $6,598.17

 

$7,696.13 and $5,698.17

 

$6,976.12 and $6,968.17

 

$6,796.12 and $6,859.17

Question 7

Use a financial calculator or computer software program to answer the following questions:

· What would be the future value of $15,555 invested now if it earns interest at 14.5 percent for seven years?

  

$30,134

 

$40,134

 

$50,134

 

$25,000

Question 8

What would be the future value of $19,378 invested now if the money remains deposited for eight years and the annual interest rate is 18 percent?

  

$72,839 

 

$73,296

 

$70,296

 

$71,000