Finance

posted by .

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?
b. What would be the future value if the interest rate is a compound interest rate?

  • Finance -

    a. P = Po + Po*r*t.
    P = 10000 + 10000*0.08*5 = $14,000.

    b. Compounded annually?
    P = Po(1+r)^n.
    P = 10,000(1.08)^5 = $14,693.28.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance

    Calculating Interest Rate. Find the interest rate implied by the following combinations of present and future values. PresentValue Years Future Value $400 11 $684 $183 4 $249 $300 7 $300 Since you do not state otherwise, I am assuming …
  2. programming

    Having troube with java, i am not a regular programmer, if anybody can help me out writting this program: write a program that takes two numbers from the java console representing, respectively, an investment and an interest rate(you …
  3. accounting

    Assume Venture Healthcare sold bonds that have a ten-year maturity, a 12 percent coupon rate with annual payments, and a $1,000 par value. a. Suppose that two years after the bonds were issued, the required interest rate fell to 7 …
  4. Personal Finance

    NEED HELP IMMEDIATELY, HAVE UNTIL 10P.M. CENTRAL TO HAVE ANSWERS?
  5. anonymous

    1.) an account invested in a month market fund grew from $67,081.20 to $67,359.39 in a month. What was the interest rate, to the nearest tenth?
  6. Finance

    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.
  7. personal finance

    what would be the future value of 280,000 based on an annual interest rate at 6 percent?
  8. personal finance

    Determining the future value of education. Jenny Franklin estimates that as a result of completing her master's degree, she will earn $7,000 a year more for the next 40 years. A.) what would be the total amount of these additional …
  9. Fins nance business

    1. Find the future value of current $1,000 5 year from now when annual interest rate 8% is compounded annually 2. Find the present value of a future value (1,000) four years from now when annual interest rate 8% is compounded quarterly. …
  10. efe

    find the formula for calculating compound interest. If Mr. John Chrystal invests $6,000 today (Present Value) at a compound interest of 9 percent, calculate the Future Value of the investment after 30 years using the compound interest …

More Similar Questions