1. $5000.00 compunded annually at 6% for 5 years= $6,691.1279?
2. $5000.00 compounded quartley at 6% for 5 years= $6,719.5819?
3. $5000.00 compounded quartley at 65 FOR 5 YEARS= $6,734.2750?
4. $5000.00 COMPOUNDED ANNUALLY FOR AT 6% FOR 6 YEARS= $7,092.5956?
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7. $7000.00 in 5 years at an annual discount rate of 6%= $5,230.8072?
8. $7000.00 in 5 years at an semiannual discount rate of 6%= $5,208.6574?
9. $7000.00 in 5 years at an quartley discount rate of 6%= $5,197.2929?
10. $7000.00 in 6 years at an annual discount rate of 6%= $4,934.7238?
To calculate the future value of an investment, you can use the formula:
FV = P * (1 + r/n)^(n*t)
Where:
FV = Future Value
P = Principal (Initial Investment)
r = Annual Interest Rate (expressed as a decimal)
n = Number of times the interest is compounded per year
t = Number of years
Let's analyze each scenario separately:
1. $5000.00 compounded annually at 6% for 5 years:
FV = 5000 * (1 + 0.06/1)^(1*5) = $5000 * (1.06)^5 = $6,732.19
The calculated value is not $6,691.1279, but $6,732.19. It seems like there may have been a rounding error in the initial calculation.
2. $5000.00 compounded quarterly at 6% for 5 years:
FV = 5000 * (1 + 0.06/4)^(4*5) = $5000 * (1.015)^20 = $6,747.42
The correct future value is $6,747.42, not $6,719.5819.
3. $5000.00 compounded quarterly at 6% for 5 years:
It seems like there may be a typo in the question, as the term "65" does not make sense in the context of compound interest. Could you please provide the correct value for the quarterly interest rate?
4. $5000.00 compounded annually at 6% for 6 years:
FV = 5000 * (1 + 0.06/1)^(1*6) = $5000 * (1.06)^6 = $7,236.03
The future value is $7,236.03, not $7,092.5956 as mentioned.
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Next, let's calculate the scenarios with discount rates:
7. $7000.00 in 5 years at an annual discount rate of 6%:
PV = 7000 / (1 + 0.06)^5 = 7000 / 1.338225 = $5,230.81
The present value of $7000 discounted at an annual rate of 6% is $5,230.81, not $5,230.8072.
8. $7000.00 in 5 years at a semiannual discount rate of 6%:
PV = 7000 / (1 + 0.06/2)^(2*5) = 7000 / (1.03)^10 = $5,226.58
The correct present value is $5,226.58, not $5,208.6574.
9. $7000.00 in 5 years at a quarterly discount rate of 6%:
PV = 7000 / (1 + 0.06/4)^(4*5) = 7000 / (1.015)^20 = $5,197.29
The present value is $5,197.29, not $5,197.2929 as mentioned.
10. $7000.00 in 6 years at an annual discount rate of 6%:
PV = 7000 / (1 + 0.06)^6 = 7000 / 1.418519 = $4,934.72
The correct present value is $4,934.72, not $4,934.7238.
Please double-check the calculations and the values provided in the question to ensure accuracy.