Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. future value of a sum of money $500 interest rate

FUTURE VALUE of a SUM of money $500 Interest Rate : 500(1+.15)5 5001.014 $1,005.68 PRESENT...

70.2K

Verified Solution

Question

Accounting

image FUTURE VALUE of a SUM of money $500 Interest Rate : 500(1+.15)5 5001.014 $1,005.68 PRESENT VALUE of a SUM of money $500 Interest Rate: $500 $500 (1+.10)2 1.21 NET PRESENT VALUE of an invested SUM of money Year \begin{tabular}{ll} & Initial Cost \\ 0 & ($100,000) \\ 1 & \\ 2 & \\ 3 & \end{tabular} Future Cash $40,000$40,000$40,000$120,000 Calculations (40000/1.1) (40000/1.21) (40000/1.331) CLASSROOM ACTIVITY Term: Investment ove You've found an investor for your new business Your investor is looking for a 30% return on their investment The initial investment is $100,000.00 The term is 3 years 1. Determine the Future Cash by Year 2. Do the Calculations 3. Determine Present Value at $30,000 10\% Term: Payback in 2 years NET PRESENT VALUE of an invested SUM of money $413.22 Year Initial Cost Future Cash 0$(100,000.00) 1 2 3 Present Value ($100,000) $36,363.64 $33,057.85 $30,052.59 (\$525.92) Present Value $(100,000.00) $36,363.64 $33,057.85 $30,052.59 $(525.92)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students