Posted by **Laura Alfonso** on Friday, April 16, 2010 at 9:42pm.

Resource: Ch. 5 of Financial Management in Health Care Organizations.

„h Calculate the future value of the following:

o $5,000 compounded annually at 6% for 5 years

o $5,000 compounded semiannually at 6% for 5 years

o $5,000 compounded quarterly at 6% for 5 years

o $5,000 compounded annually at 6% for 6 years

„h Answer the following: What conclusions can be drawn about the frequency of compounding interest? What conclusions can be drawn about the length of time an amount is compounding?

„h Calculate the present value of the following:

o $7,000 in 5 years at an annual discount rate of 6%

o $7,000 in 5 years at a semiannual discount rate of 6%

o $7,000 in 5 years at a quarterly discount rate of 6%

o $7,000 in 6 years at an annual discount rate of 6%

„h Answer the following: What conclusions can be drawn about the frequency of the discounting interval? What conclusions can be drawn about the length of time until the receipt of that value?

„h Answer the following: Assume you have a choice between two annuity contracts. Contract A pays $5,000 per year for 5 years starting one year from today. Contract B pays $5,000 per year for 5 years starting today. The discount rate for each is 6%. Which annuity contract would you choose for your retirement? Why?

## Answer This Question

## Related Questions

- Financial Management in Health Care Organizations - $5,000 compounded ...
- HUMAN RESOURCE PRINCIPLES AND PRACTICES IN HEALTH - Discuss the regulatory ...
- HEALTH - Identify a contemporay health care issue, and give the different ...
- health - You have been appointed by the state you live in to get health care ...
- Finances and Math - Can someone please help me solve these problems or help me ...
- health management - As health care manager what two strategies would you ...
- heatlh care - You're The New Director Of A Hospital Health Information ...
- Accounting - How do I calculate the future value of the following? $5,000 ...
- Health - Which one of the following activities is considered part of health care...
- Accounting - Calculate the future value of the following: o $5,000 compounded ...

More Related Questions