# Compound Interest : Future Value and Present Value

39,099 results

### jill

***Solve exercise using present value principal -1500 term of invesment(%) -4.5 Interest compounded - monthly present value ? Compound interest ? ** the problem is asking for me to find the present value & compound value!!

### 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 formula. In addition, calculate the Future...

### Math

Deborah deposits $200 into an account that pays simple interest at the rate of 7%. How much will she have at the end of 4 months? a) Present Value with simple interest b) Future Value with simple interest c) Future Value with compound interest d) Simple Interest e) Effective Rate

### MATH

Use the following time value of money tables to answer the following questions. Assume that the annual rate of interest is 6% for each of the four following problems. i = 6% Time Periods (n) Future Value of 1 Present Value of 1 Future Value of an Annuity Present Value of an ...

### Finance

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?

### Business math

Find the future value of an investment of $10 ,500 if it is invested for six years and compounded semiannually at an annual rate of 3%. Use the $1.00 future value table or the future value and compound interest formula.

### math

Interest is calculated with the following formula I=Prt What is the future value ( present value + interrst ) of this account? Present value is $600; interest is 6% Term is 12 years ( Enter your answer as dollars and cents. )

### Business Math

Solve the following by using the present value formula. Compound Amount- $675 Term of Investment-15 months Nominal Rate (%)- 2.7 Interest Compounded quarterly Present Value ___________? Compound Interest _________?

### Contempoary Mthematics

Question8: Using the Present Value Table on page 358 of your text to compute the present value (principal) for an investment with a compound amount of $20,000, a 30 moth term of investment, and a 14% nominal interest rate compound semiannually. Question 9. What is the compound...

### math

Using the present value formula you deposit $12,000 in an account that pays 6.5% interest compounded quarterly. A. find the future value after one year? B. Use the future value formula for simple interest to determine the effective annual yield?

### Math

Find how much must be deposited now (present value) at % simple interest so that in 6 years an account will contain $8958 (future value). present value = $ WHAT FORMULA DO I NEED TO USE TO HELP ME SOLVE THE PROBLEM?

### Finance

200- to 300-word description of the four time value of money concepts: present value, present value of an annuity, future value, and future value of annuity. Describe the characteristics of each concept and provide an example of when each would be used.

### Finance

Write a 200- to 300-word description of the four time value of money concepts: present value, present value of an annuity, future value, and future value of annuity. Describe the characteristics of each concept and give an example of when each would be used

### Finance

• Write a 200- to 300-word description of the four time value of money concepts: present value, present value of an annuity, future value, and future value of annuity. Describe the characteristics of each concept and provide an example of when each would be used.

### Finance

Jean will receive $8,500 per year for the next 15 years from her trust. If a 7% interest rate is applied, what is the current value of the future payments? Describe how you solved this problem, including which table (for example, present value and future value) was used and why.

### Math

A problem is listed below. Identify its type. John bought a new house. He made a $4,500 down payment and financed the rest, $280,000, through his credit union. The credit union charged him 11% per year compounded monthly for 22 years. How much were his monthly payments? a) ...

### financial 200

Write a 200-300 word description of the four time value of money concepts: present value, present value of an annuity, future value, and future value of annuity. Descrive the characteristics of each concept and provide an example of when each of when each would be used.

### math/accounting

why is it necessary to an annuity present value. Why is the calculation of the present value of any future amount important? Why is the present value of any future amount greater when the discount rate is lower?

### finance

Use the following scenario to answer Discussion Question 2. Jean will receive $8,500 per year for the next 15 years from her trust. If a 7% interest rate is applied, what is the current value of the future payments? Describe how you solved this problem, including which table (...

### Finance

Which of the following actions wiling DECREASE the present value of an investment. A. Decrease the interest B. Decrease the future value C. Decrease the amount of time D. All of the above will increase the present value

### Economics

Find the future value one year from now of a $7,000 investment at a 3% annual compound interest rate. Also calculate the future value if the investment is made for 2 yeaars?

### Personal Finance

Which type of computation would a person use to determine current value of a desired amount for the future? A. Present value of a series of deposits B. Future value of a single amount C. Future value of a series of deposits D. Present value of a single amount

### 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.

### math

compute the compound and the interest on a loan of $10,400 compounded annually for 6 years at 12% use the $1.00 future value and compound interest formula

### 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 that your interest rate is compounded ...

### 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. 3.Find the present value of a four year...

### math

Classify the finacial problem. Assume a 7% interest rate compounded annually. Find the value of a $ 1,000 certificate in 4 years. a) sinking fund, b) ordinary annuity, c) future value, d) present value e) amortization.

### math

Classify the finacial problem. Assume a 7% interest rate compounded annually. Find the value of a $ 1,000 certificate in 4 years. a) sinking fund, b) ordinary annuity, c) future value, d) present value e) amortization

### Compound Interest : Future Value and Present Value

Payments of $1800 and $2400 weere made on a $10,000 variable-rate loan 18 and 30 months after the date of the loan. The interest rate was 11.5% compounded semi-annually for the first two years and 10.74% compounded monthly thereafter. What amount was owed on the loan after ...

### Business Math

Solve the following by using the present value formula. Compound Amount- $700 Time Period(years)-8 years Nominal Rate (%)- 1.5 Interest Compounded monthly Compound Amount___________? Compound Interest _________?

### Math

The present value of the money in your savings acct is $420, and you're receiving 3% annual interest compounded monthly. What is the future value in 2 months?

### Accounting

On June 1, 2012, Pitts Company sold some equipment to Gannon Company. The two companies entered into an installment sales contract at a rate of 8%. The contract required 8 equal annual payments with the first payment due on June 1, 2012. What type of compound interest table is...

### Accounting

On June 1, 2012, Pitts Company sold some equipment to Gannon Company. The two companies entered into an installment sales contract at a rate of 8%. The contract required 8 equal annual payments with the first payment due on June 1, 2012. What type of compound interest table is...

### math

The present value of the money in your savings account is $420, and you're receiving 3% annual interest compounded monthly. What is the future value in two months?

### Math

The present value of the money in your savings account is $420, and you're receiving 3% annual interest compounded monthly. What is the future value in two months?

### Personal Finance

If a person deposited $50 a month for 6 years earning 8%, this would involve what type of computation? A. Present value of a series of deposits B. Future value of a single amount C. Future value of a series of deposits D. Present value of a single amount I believe it's C

### Compound math

(Future Value) Suppose you invest $8000 into an account that pays an annual interest rate of 6.2%. How much is in the account after 30 years if a. simple interest is compound monthly? b. interest is compounded monthly? c. interest is compounded daily?

### business math-73

Use the Present Value Table on page 358 of your text to compute the present value (principal) for an investment with a compound amount of $20,000, a 30-month term of investment, and a 14% nominal interest rate compounded semiannually. (Points : 2.5)

### math

a=16,00, r=11.5%, t=5 years determine the present value, p, you must invest to have the future value, a, at simple interest rate r after time t. round uo to nearest cent

### Math-- Desperate for help!

Find the amount in an account if $2000 is invested at 6.125%,compounded semi-anually,for 2 years. A. $2,256.49 B. $2,252.50 C. $2,324.89 D. $544,757.84 One of these is the correct answer. I am coming up with (D) 544,757.84 Can you check, because I am probably wrong. You are ...

### finance

Q.1.Differentiate future value from present value and explain how compound interest differs from simple interest. Q.2. John expects to need $50,000 as a down payment on a house in six years. How much does she need to invest today in an account paying 7.25 percent? Q.3. Richard...

### Math

19. The present value of the money in your savings account is $420, and you're receiving 3% annual interest compounded monthly. What is the future value in two months? A. $422.10 B. $432.60 C. $424.11 D. $426

### fin 200 question

Jean will receive $8,500 per year for the next 15 years from her trust. If a 7% interest rate is applied, what is the current value of the future payments? Describe how you solved this problem, including which table (for example, present value and future value) was used and ...

### interest

an inheritance will be 20000. the interest rate for the the time value of money is 7%. How much is the inheritance worth now, if it will be received a) in 5 years? b)in 10 years? c)in 20 years I know i'm supposed to use F=P(1+i)^n or P=F(1+i)^-n but I am not sure if the ...

### Personal Finance

Aaron wants to put $200.00 per month into an IRA account at 15% for four years. What is he solving for using his financial calculator? A. Present Value B. Future Value C. Interest Rate D. Payment

### Personal Finance

Aaron wants to put $200.00 per month into an IRA account at 15% for four years. What is he solving for using his financial calculator A. present value B. future value C. interest rate D. payment

### ALGEBRA

If the principal P = $900, the rate r = 7 1/2 %, and time t = 1 year, find the following. What is the amount of interest? What is the future value? Ok found I think I found the interest 900x0.075=67.50 is this correct.Now I need help in finding the future value.

### Math

In the future value annuity table at any interest rate for one year, why is the future value interest factor of this annuity equal to 1.00?

### MATH

Find the value of single perpetuity payment if the present value of the perpetuity payments at t=0 years is AED 500,000 and the interest rate is R% compound per year.[Choose R% from 8% to 12%]

### math

find the present value of the following future amount. 600,000 at 6% compunded semiannually for 25 years what is the present value

### Finance

Comparing Future Value. Calculate the future value of a retirement account on which you deposit $2000.00 a year for 30 years with an annual interest rate of 7%.

### Finance

An investment will provide Nicholas with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8% annually? What is the present value of the above annuity if the payments are received at the beginning of each year...

### math

Computing future value calculate the future value of a retirement account in which you deposit $2,000 a year for 30 years with an annual interest rate of 7 percent.

### Math

compound and interest Using the below values please calculate the amount accumulated (future value) *Initial principal=$2000 *Interest Rate=9% *Number of years 7 *Monthly compounding

### Math

compound and interest Using the below values please calculate the amount accumulated (future value) *Initial principal=$2000 *Interest Rate=9% *Number of years 7 *Monthly compounding

### Math

compound and interest Using the below values please calculate the amount accumulated (future value) *Initial principal=$2000 *Interest Rate=9% *Number of years 7 *Monthly compounding

### accounting

I need an understanding of a few matters in my accounting class: 1) what are annuities and why is it necessary to calculate there present value? 2) How does the frequency of interest compounding, regardless of the rate of interest or period of accumulation affect the future ...

### personal finances

computing future value. calucale the future value of a retirement account in which you deposit $2,000 a year for 30 years with an annual interest rate of 7 percent.

### financal problems

Computing future value. Calculate the future value of a retirement account in which you deposit 2,000 a year for 30 years with an annual interest rate of 7 percent.

### Math

Use the present value formula to compute the amount that should be set aside today to ensure a future value of $ 2,000 in 1 year if the interest rate is 12% annually, compounded annually. (a) $ 1,776.97 (b) $ 1,765.89 (c) $ 1,785.72 (d) $ 1,786.97 (e) $ 1,768.97

### math

what formulas do i use for this: Investments Suppose $10,000 is invested at an annual rate of 5% for 10 years. Find the future value if interest is compounded as follows. A) Annually B) Quarterly C) Monthly D)Daily (365 days) In each case, use the formula Future value = ...

### present value

The present value P that will amount to A dollars in n years with interest compounded annually at annual interest rate r, is given by P = A (1 + r) -^n. Find the present value that will amount to $50,000 in 20 years at 8% compounded annually.

### accounting

What is the future value on 12/31/2014 of a deposit of $10,000 made of 12/31/2010 assuming interest of 16% compound quarterly.

### Accounting

I am so confused on how to answer this question given from my instructor. I see many websites that pertain to present value. Is there an explanation somewhere on the internet that would help explain? I googled the question and found"Net present value - Wikipedia, the free ...

### Math

Young and Company owes bond holders $5,500 interest at the end of each quarter for the next five years. How much must they deposit now at 8% interest compounded quarterly to yield an annuity payment of $5,500? -- I am pretty sure I know how to do the problem but I am just ...

### math

Rob has a balance of 1695$ in his bank account The account pays 2.9% interest per year, compounded annually. The compound interest formula is A=P(1+i)^n A=future value\P=principal/i+interest rate/n=number of payments rods balance will reach 3000$ after how many years?

### accounting

Selling price of a bond: Problem type 1 On December 31, 2008, $140,000 of 9% bonds were issued. The market interest rate at the time issuance was 11%. The bonds pay on June 30 and December 31 and mature in 10 years. Compute the selling price of a single $1,000 bond on December...

### Personal Finance

NEED HELP IMMEDIATELY, HAVE UNTIL 10P.M. CENTRAL TO HAVE ANSWERS?? 1.Determining the Future Value of Education. Jenny Franklin estimates that as a result of completing her master’s degree, she will earn $6,000 a year more for the next 40 years. a.What would be the total ...

### Accounting

Compute the price of $7,936,343 received for the bonds by using the tables of present value in Appendix A. (Round to the nearest dollar.) Your total may vary slightly from the price given due to rounding differences. Present value of the face amount $ Present value of the semi...

### accouting

5. Compute the price of $3,461,181 received for the bonds by using the tables of present value in Appendix A. (Round to the nearest dollar.) Your total may vary slightly from the price given due to rounding differences. Present value of the face amount $ Present value of the ...

### algebra

Find the future value, using the future value formula and a calculator. (Round your answer to the nearest cent.) $990 at 5.5% compounded quarterly for 3 years Find the present value, using the present value formula and a calculator. (Round your answer to the nearest cent.) ...

### 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 will expect the user to enter a number such...

### Finance

differences between present value and future in time value

### math

calculate the present value (principal) and compound interest on $900 (term of investment 1.75 years ) rate of 18% compounded monthly

### college math

Find the approximate (with an integral estimate) present and future values of a constant income stream of 2500 dollars per year over a period of 40 years, assume a 5 percent annual interest rate compounded continuously. Find current and future value?

### math

future amount needed $6,000 interest rate is 3% compounding period semiannually investment time 8 years what would the present value be

### college

With examles give differences between present value and future value as used in financial mathematics.

### math

calculate the present value AND the compound interest for this investment, round to the nearest cent...$20.000 with a nominal rate of 14% for 30 months ( semiannually)

### math,correction

can someone correct these for me thanks.. Problem #4 Find the effective rate corresponding to the given nominal 18% compounded quarterly. My answer: 19.2% Problem #7 Find the future value of the ordinary annuity If R= $2500,I=5% interest compounded quarterly for 16 years. My ...

### Help math calc

Find the future value of $700 deposited at 3% for 9 years if the account pays simple interest and the account pays compounded annually? The future value of an account that pays simple interest is what?

### Accounting

(Present Value) What is the present value of an annuity that pays $250,000 in 30 years if interest accumulates at a rate of 7.5% compounded semiannually? (i.e. How do you have to pay NOW for the policy? You make no payments other than your lump sum payment.)

### business math

what are the amount and present value of an annuity of $100 paable at the beginning of each quarter fro 15 years if the interest rate is 12% compounded quarterly? Present Value=PMT[(1-(1+i)^-n)/i] Amount = ?????

### math

find the present value of ordinary annuity payments of 890 each year for 16 years at 8% compounded annually What is the amount that must be paid (Present Value) for an annuity with a periodic payment of R dollars to be made at the end of each year for N years, at an interest ...

### English

Luther Burbank /devolved/ more than 800 new plant varieties future present past*** future perfect This recipe /will produce/ two dozen chocolate chip cookies past future perfect*** present future Since his injury at the track meet, Liam /favors/ his right leg past future ...

### math

Present Value suppose your bank account will be worth $7000 in one year. The interest rate (discount rate) that the bank pays is 8%. What is the present value of your bank account today? What would the present value of the account be if the discount rate is only 3%

### Math

Compare the results of the present value of a $6,000 ordinary annuity at 10 percent interest for ten years with the present value of a $6,000 annuity due at 10 percent interest for eleven years. Explain the difference.

### Present Value Math

Find the present value of an ordinary annuity of $500 payments each made quarterly over 6 years and earning interest at 8% per year compounded quarterly. $9,456.96 $2,311.44 $24,968.07 $5,264.38 Thank you

### algebra

A grandmother is looking for a plan to finance her new grandchild’s college education. She has $25,000 to invest. Search the internet and locate a long-range investment plan, CD, Savings Bond, etc, for the grandmother. The plan is to earn compound interest. Calculate the ...

### Business Mathematics

Jungle Jim owes three debts: $500 due in one year plus interest at 6% semi-annually, $2000 due in two years, $1000 due in three years plus interest at 5% compounded monthly. He wishes to discharge these debts by paying $500 now and two equal but unknown payments in one and two...

### Marcoeconomics

if Bond price= the discounted value of all the future income it will generate then does it mean that the buyer of the bond earn nothing? Because he in fact need to pay the discounted value of the future income(interest) which is said to be earned by him when buying the bond. ...

### math

1. =SUM(A14,A8) 2. =C8+ 15 3. PMT function {PMT(D4D12,E4,-C4)} What will each of the above formulas do please see if I have the correct answer using excel or another spreadsheet document. 1. Is the sum between the two blocks listed the more blocks the more #'s to the equation...

### math algebra

A tax free municipal bond pays 4.75% compounded continuously. What is the value of a $2,000 bond after 30 years? Round your answer to the nearest cent. [Hint- A=P e^rt where P= present(initial) value, A= future value, r= annual rate, and t= number of years] P.S.The rt is an ...

### math algebra

A tax free municipal bond pays 4.75% compounded continuously. What is the value of a $2,000 bond after 30 years? Round your answer to the nearest cent. [Hint- A=P e^rt where P= present(initial) value, A= future value, r= annual rate, and t= number of years] P.S.The rt is an ...

### Calculus

OK I understand the concept present value but I don't understand how to solve for present value in this context: Assume that you won a local contest for which you gain a continuous income stream at a rate R(t)=5000e^0.1t per year for 5 years and r=0.05. Find present value. Can...

### ALegbra

If an apartment complex will need painting in 3 1/2 years and the job will cost $25,000, what amount needs to be deposited into an account now in order to have the necessary funds? The account pays 8% interest compounded semiannually. (a) State the type of the problem. future ...

### Finance

What is the present value of $100 PERPETU I TY of the interest rate is 7%? If interest rates doubled to 14%, what would its present value be? At 7% hundred dollars multiplied 0.943 equals 9430 or is it 14.2857 multiplied 100 equals 1428. 57? At 14% is it $100 times 0.877 ...

### Math

Find the future value of a $10,000 investment at 10 % annual interest compounded semiannually for 4 years. (a) $ 14,000 (b) $ 12,000 (c) $ 24,774.55 (d) $ 14,774.55 (e) $ 24,477.55 Can someone please help me find the future value? I am stuck on this problem.

### Business Math 205

Calculate the PRESENT VALUE ANNUNITIES. Round to the nearest cent when necessary. Annunity Payment:$500 Payment Frequency:(Every 3 months)Time Period YRS:(2)Nominal Rate%:(16)Interest Compounded:(Quarterly) Present Value Of The Annuity is What?

### Math please check answer

1. =SUM(A14,A8) 2. =C8+ 15 3. PMT function {PMT(D4D12,E4,-C4)} What will each of the above formulas do please see if I have the correct answer using excel or another spreadsheet document. 1. Is the sum between the two blocks listed the more blocks the more #'s to the equation...