Question 12 Find the future value of an investment of $1,600 made today for the following rates and periods: (If you solve this problem with algebra round Intermediate calculations to 4 decimal places, in all cases round your answers to the nearest penny.) Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) a. 6.25 percent compounded semiannually for 12 years. Future value $ b. 7.63 percent compounded quarterly for 6 years. Future value C. 8.9 percent compounded monthly for 10 years. Future values d. 10 percent compounded daily for 3 years. Future values e. 8 percent compounded continuously for 2 years. Future value

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Business

Yair Schroeder

29 September, 01:48

Question 12 Find the future value of an investment of $1,600 made today for the following rates and periods: (If you solve this problem with algebra round Intermediate calculations to 4 decimal places, in all cases round your answers to the nearest penny.) Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) a. 6.25 percent compounded semiannually for 12 years. Future value $ b. 7.63 percent compounded quarterly for 6 years. Future value C. 8.9 percent compounded monthly for 10 years. Future values d. 10 percent compounded daily for 3 years. Future values e. 8 percent compounded continuously for 2 years. Future value

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Danica Church · Answer 1

Instructions are listed below

Explanation:

Giving the following information:

Find the future value of an investment of $1,600 made today.

A) 6.25 percent compounded semiannually for 12 years.

Effective rate = 0.0625/2 = 0.03125

FV = PV * (1+i) ^n

FV = 1600 * (1.03125) ^24 = $3,348.54

B) 7.63 percent compounded quarterly for 6 years.

Effective rate = 0.0763/3 = 0.0254

FV = 1600 * (1.0254^18) = $2,513.04

C) 8.9 percent compounded monthly for 10 years.

Effective rate = 0.089/12 = 0.00742

FV = 1600 * (1.00742^120) = $3,884.975

D) 10 percent compounded daily for 3 years.

Effective rate = 0.000274

FV = 1600 * (1.000274^1095) = $2,159.75

E) 8 percent compounded continuously for 2 years.

FV = PV*e^ (ixt)

t = number of years

FV = 1600*e^ (0.08*2) = $1,877.62