a. Calculate the future value of $1,000, given that it will be held in the bank for 6 years and earn an annual interest rate of 6 percent.
b. Recalculate part (a) using a compounding period that is (1) semiannual and (2) bimonthly.
c. Recalculate parts (a) and (b) using an annual interest rate of 12 percent.
d. Recalculate part (a) using a time horizon of 12 years at an annual interest rate of 6 percent.
e. What conclusions can you draw when you compare the answers in parts (c) and (d) with the answers in parts
(a) and (b)?
Question 2: If you deposit $3,900 today into an account earning an annual rate of return of 7 percent, what would your account be worth in 25 years (assuming no further deposits)? in 30 years
Question 3: Sarah Wiggum would like to make a single investment and have $2.1 million at the time of her retirement in 34 years. She found a mutual fund that will earn her 5% annually. How much will Sarah have to invest today? If Sarah earned an annual return of 18%, how soon could she then retire?
If Sarah can earn 5 % annually for the next 34 years, the amount of money she will save to invest today is $_________ (round to the nearest cent)
Question 4: How many years will it take for $500 to grow to $1,076.58 if its invested at 6% compounded annually?
Question 5: Ronen Consulting has just realized an accounting error that had resulted in an unfunded liability of $375,000 due in 28 years. In other words, they will need $375,000 in 28 years. Toni Flanders, the company’s CEO, is scrambling to discount the liability to the present to assist in valuing the firm’s stock. If the appropriate discount rate is 9%, what is the present value of the liability?
If the appropriate discount rate if 9%, the present value of $375,000 liability due in 28 years is $__________ (round to the nearest cent)
Question 6: Lance Murdock purchased a wooden statue of a Conquistador for $7,900 to put in his home office 7 years ago. Lance has recently married, and his home office is being converted into a sewing room. His new wife, who has far better taste than Lance, thinks the Conquistador is hideous and must go immediately. Lance decided to sell it on E-Bay an only received $4,800 for it, and so he took a loss of the investment. What was his rate of return, that is, the value of i?
What was Lance Murdock’s rate of return, that is, the value of i? Enter a negative percentage for a loss ______% (round to two decimal places)
Question 7: You are offered $90,000 today or $320,000 in 15 years. Assuming that you can earn 13% on your money, which should you chose?
If you are offered $320,000 in 15 years and you can earn 13% on your money, what is the present value of $320,000 $_______________ (round to the nearest cent)
Question 8: Your grandmother asks for your help in choosing a certificate of deposit (CD) from a bank with a one-year maturity and a fixed interest rate. The first certificate of deposit, CD #1, pays 2.45% APR compounded quarterly, while the second certificate of deposit, CD #2, pays 2.50% APR compound daily. What is the effective annual rate (the EAR) of each CD, and which CD do you recommend to your grandmother?
If the first certificate of deposit, CD #1 pays 2.45% APR compounded quarterly, the EAR for the deposit is __________% (round to two decimal places)
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
Ace Writing Center has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.
Essays
At Ace Writing Center, Nowadays, students normally have extremely busy schedules. You will note that some of them have to take on some evening or weekend jobs in order to get some income that can help them to sustain in college or in the university. This can deny them a chance to write all the essays given. Others usually get bombarded with a lot of work by their lecturers. This can still delay such students from working on all their essays. However, some of them usually try to work on all these essays but end up delivering their work late. This can prevent them from graduating since most lecturers are strict on deadlines. If you want to write a business essay, the wise way is to hire an outstanding essay writing service like us, so that you can get the best results. If you are keen, you will note that many companies usually overcharge their customers. Some of them are there only to make money. And in reality, they really don’t care to build a long term commitment with students. You should not choose such companies. You should take your time and choose a reliable company to work with. Ace Writing Center is the ultimate solution for you. We have been offering our writing service for more than 7 years. This is a clear indication that you will get quality essay writing service. We have a wide range of writers who can work on any business essay that you might have. We believe in doing extensive research so that we can provide quality work to all our clients. .
Admissions
Admission and Business Papers
Have you ever had to write an admission essay for college? The majority of students face the same issues when applying to a university or college and many in such situations decide they need professional help to cope with this matter. They get in a situation when the deadline keeps coming closer but lack motivation to start because they are just not sure if their writing skills are strong enough. We have a solution for you! Ace Writing Center is the best admission essay writing service with a large professional team and years of experience in providing high-quality papers to students of all levels and faculties. The mission of our team is to help students make their dreams of entering a good college come true and that’s what we offer!.
Editing
Editing and Proofreading
Sometimes all the words for your paper just flow out of your mind and into your fingers. You type quickly at your keyboard and there they are, your beautiful words right there on the screen. But you have no idea how to polish it up. You may be wishing there was a paper writing service that offered this type of writing service. Look no more! Here at Ace Writing Center, we offer you an editing and proofreading option that you can't find anywhere else..
Coursework
College Essay Writing
In case you are familiar Ace Writing Center, you know the way to distinguish a better company from a cheap one exactly. First of all, poor service website does not have a sufficient support. We think support team is an essential part of success; it has to answer all clients’ questions and be a connecting link between clients and their writers. On our web-service you will get answers about anything you need and your writer will receive all your instructions, assignments and requirements exactly and swiftly. A writing service that we run has got a flexible pricing system that will save you from senseless wastes and many bonus systems that let you sparing money for something important for you.
