I just want to know if anyone can help me in determining if I am on track with this assignment and if anyone can point out where I am wrong and how I need to fix it. I have already completed this assignment on my own and need someone to review it.

Thank You

Here is the assignment- Please contact me here with any help you canm provide.

Present Value, Future Value, and Annuity Due

3. You will receive $5,000 three years from now. The discount rate is 8 percent.

a. What is the value of your investment two years from now? Multiply $5,000 _ .926 (one year’s discount rate at 8 percent).

FV = 5,000
Rate= 8%
N= 1 year
PV= unknown

PV = FV x PVIF/8% ^ 1
= 5,000 x 0.926
= 4,630

b. What is the value of your investment one year from now? Multiply your answer to part a by .926 (one year’s discount rate at 8 percent).

FV= 4,630
Rate= 8%
N = 1 year
PV= unknown

PV = FV x PVIF/8% ^ 1
= 4,630 x 0.926
= 4,287.38

c. What is the value of your investment today? Multiply your answer to part b by .926 (one year’s discount rate at 8 percent).

FV= 4,287.38
Rate= 8%
N= 1 year
PV = unknown

PV = FV x PVIF/8% ^ 1
= 4,287.38 x 0.926
= 3,970.11

d. Confirm that your answer to part c is correct by going to Appendix B (present value of $1) for n _ 3 and i _ 8 percent. Multiply this tabular value by $5,000 and compare your answer to part c. There may be a slight difference due to rounding.

FV = 5,000
Rate = 8%
N = 3 years
PV= unknown

PV = FV x PVIF/8% ^ 3
= 5,000 x 0.794
= 3,970

4. If you invest $9,000 today, how much will you have:

a. In 2 years at 9 percent?

PV = 9,000
Rate= 9%
N= 2 years
FV = PV x FVIF/ 9% ^ 2

= 9,000 x 1.188
= 10, 692

b. In 7 years at 12 percent?

PV = 9,000
Rate= 12%
N= 7 years

FV = PV x FVIF/ 12% ^ 7
= 9,000 x 2.210
= 19890.00

c. In 25 years at 14 percent?

PV = 9,000
Rate= 12%
N= 7 years

FV = PV x FVIF/ 14% ^ 25
9000 x (1 +.14) ^25
= 9,000 x 26.46
= 238,157.24

d. In 25 years at 14 percent (compounded semiannually)?

Semiannual Compounding requires an individual to divide the interest rate by 2 and doubling the number of periods which would be an interest rate of 7 % and a period of 50 years in this case.
PV = 9,000
Rate= 7%
N= 50 years

FV = PV x FVIF/ 7% ^ 50
9,000 x (1 + 0.7) ^ 50
= 9,000 x 3.330
= 269,730.00

5. Your uncle offers you a choice of $30,000 in 50 years or $95 today. If money is discounted at 12 percent, which should you choose?
FV= 30,000
N = 50 years
Rate= 12%

PV = FV x PVIF/ 12 % ^50
3000 / (1 + .12) ^ 50 = 103.81
Taking into consideration that 30,000 has a high present value I would take the first option.

Take the $95. Assuming you take the $95 and compound it daily at an annual rate of 12% for 50 years you would have $38,287.96 which is obviously more than $30,000.

Overall, your calculations for the present value, future value, and annuity due are correct. However, there are a few adjustments that need to be made in your calculations.

For question 3:
a. The formula you used for calculating the present value (PV) is incorrect. The correct formula is: PV = FV / (1 + r)^n, where r is the discount rate and n is the number of years. Using this formula, the calculation should be as follows:
PV = 5,000 / (1 + 0.08)^1 = 4,629.63 (rounded to 2 decimal places)

b. The calculation for the value of your investment one year from now is incorrect. You should multiply the answer from part a by (1 + r), not by 0.926. The correct calculation should be:
FV = 4,629.63 * (1 + 0.08) = 4,999.99 (rounded to 2 decimal places)

c. The calculation for the value of your investment today is incorrect. You should multiply the answer from part b by (1 + r), not by 0.926. The correct calculation should be:
FV = 4,999.99 * (1 + 0.08) = 5,399.99 (rounded to 2 decimal places)

d. The calculation in part d is correct, as you used the correct formula for calculating the present value.

For question 4:
a. The calculation for the future value in 2 years at 9 percent is correct.

b. The calculation for the future value in 7 years at 12 percent is correct.

c. The calculation for the future value in 25 years at 14 percent is incorrect. You used a wrong interest rate (12%) instead of 14%. The correct calculation should be:
FV = 9,000 * (1 + 0.14)^25 = 122,128.31 (rounded to 2 decimal places)

d. The calculation for the future value in 25 years at 14 percent (compounded semiannually) is incorrect. You used the wrong interest rate (7%) instead of 14%. The correct calculation should be:
FV = 9,000 * (1 + 0.14/2)^(2*25) = 283,803.83 (rounded to 2 decimal places)

For question 5:
The calculation for the present value of 30,000 in 50 years at a discount rate of 12% is incorrect. The correct calculation should be:
PV = 30,000 / (1 + 0.12)^50 = 245.62 (rounded to 2 decimal places)

Since the present value of 30,000 is lower than the value of 95, you should choose the $95 option.

Please consider making these adjustments to your calculations.

In order to determine if you are on track with this assignment, I can review your calculations and provide feedback on any errors or areas that need improvement.

Let's start with question 3:

a. The value of your investment two years from now should be calculated as follows:

FV = $5,000
Rate = 8%
N = 2 years

PV = FV / (1 + Rate)^N
= $5,000 / (1 + 0.08)^2
= $4,629.63 (rounded to two decimal places)

Your answer is slightly different from the correct answer due to rounding errors.

b. The value of your investment one year from now should be calculated based on the value from part a:

FV = $4,629.63
Rate = 8%
N = 1 year

PV = FV / (1 + Rate)^N
= $4,629.63 / (1 + 0.08)^1
= $4,281.25 (rounded to two decimal places)

Again, your answer is slightly different from the correct answer due to rounding errors.

c. The value of your investment today should be calculated based on the value from part b:

FV = $4,281.25
Rate = 8%
N = 1 year

PV = FV / (1 + Rate)^N
= $4,281.25 / (1 + 0.08)^1
= $3,972.22 (rounded to two decimal places)

Your answer is very close to the correct answer, but there is a slight difference due to rounding errors.

d. To confirm your answer from part c, you can use the present value of $1 from Appendix B:

FV = $5,000
Rate = 8%
N = 3 years

PV = FV x PVIF/8% ^ N
= $5,000 x 0.794
= $3,970.00

Your answer matches the correct answer.

Moving on to question 4:

a. To calculate the amount you will have in 2 years at a 9% interest rate:

PV = $9,000
Rate = 9%
N = 2 years

FV = PV x (1 + Rate)^N
= $9,000 x (1 + 0.09)^2
= $10,692.81 (rounded to two decimal places)

Your answer is slightly different from the correct answer due to rounding errors.

b. To determine the amount you will have in 7 years at a 12% interest rate:

PV = $9,000
Rate = 12%
N = 7 years

FV = PV x (1 + Rate)^N
= $9,000 x (1 + 0.12)^7
= $19,326.12 (rounded to two decimal places)

Your answer is incorrect and does not match the correct answer.

c. To calculate the amount you will have in 25 years at a 14% interest rate:

PV = $9,000
Rate = 14%
N = 25 years

FV = PV x (1 + Rate)^N
= $9,000 x (1 + 0.14)^25
= $83,522.80 (rounded to two decimal places)

Your answer is incorrect and does not match the correct answer.

d. To determine the amount you will have in 25 years at a 14% interest rate with semiannual compounding:

PV = $9,000
Rate = 14%/2 (compounded semiannually)
N = 25 years x 2 (since compounding is semiannual)

FV = PV x (1 + Rate)^N
= $9,000 x (1 + 0.07)^50
= $64,344.23 (rounded to two decimal places)

Your answer is incorrect and does not match the correct answer.

Lastly, for question 5:

To determine which option you should choose:

PV = $95
FV = $30,000
Rate = 12%
N = 50 years

PV = FV / (1 + Rate)^N
= $30,000 / (1 + 0.12)^50
= $297.57 (rounded to two decimal places)

Since the present value of $30,000 is only $297.57, it would be more beneficial to choose the option of $95 today.

Based on the review, there are a few calculations that need to be corrected in order to accurately determine the values and amounts.