Calculate the following time value of money problems: If you want to accumulate $500,000 in 20 years,...

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Finance

Calculate the following time value of moneyproblems:
If you want to accumulate $500,000 in 20 years, how much do youneed to deposit today that pays an interest rate of 15%?
What is the future value if you plan to invest $200,000 for 5years and the interest rate is 5%?
What is the interest rate for an initial investment of $100,000to grow to $300,000 in 10 years?
If your company purchases an annuity that will pay $50,000/yearfor 10 years at a 11% discount rate, what is the value of theannuity on the purchase date if the first annuity payment is madeon the date of purchase?
What is the rate of return required to accumulate $400,000 ifyou invest $10,000 per year for 20 years. Assume all payments aremade at the end of the period.

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4.2 Ratings (792 Votes)

1 Information provided Future value 500000 Time 20 years Interest rate 15 The question is concerning finding the present value of an annuity due Annuity due refers to annuity that occurs at the beginning of a period This can also be solved using a financial calculator by inputting the below into the calculator The financial calculator is set in the end mode Annuity due is calculated by setting the calculator to the beginning mode BGN To do this press 2nd BGN 2nd SET on See Answer

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