Problem 4-10 Present and Future Values of Single Cash Flows for Different Interest Rates Use both the TVM...

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Finance

Problem 4-10
Present and Future Values of Single Cash Flows for DifferentInterest Rates
Use both the TVM equations and a financial calculator to findthe following values. Round your answers to the nearest cent.(Hint: Using a financial calculator, you can enter theknown values and then press the appropriate key to find the unknownvariable. Then, without clearing the TVM register, you can"override" the variable that changes by simply entering a new valuefor it and then pressing the key for the unknown variable to obtainthe second answer. This procedure can be used in parts b and d, andin many other situations, to see how changes in input variablesaffect the output variable.)
An initial $200 compounded for 10 years at 6.7 percent.
$
An initial $200 compounded for 10 years at 13.4 percent.
$
The present value of $200 due in 10 years at a 6.7 percentdiscount rate.
$
The present value of $200 due in 10 years at a 13.4 percentdiscount rate.
$

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4.3 Ratings (751 Votes)

In order to compute the future value of an investment we shall use the below equation Future Value Present Value x 1 discount rate n In parts a and b we shall use the above equation to compute the future value a Following are the values that we will plug in the above equation Present Value 200 N 10 years IY 67 or 0067 Discount rate Future Value 200 x 1 0067 10 38254 By using the financial calculator the above solution can See Answer

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Problem 4-10Present and Future Values of Single Cash Flows for DifferentInterest RatesUse both the TVM equations and a financial calculator to findthe following values. Round your answers to the nearest cent.(Hint: Using a financial calculator, you can enter theknown values and then press the appropriate key to find the unknownvariable. Then, without clearing the TVM register, you can"override" the variable that changes by simply entering a new valuefor it and then pressing the key for the unknown variable to obtainthe second answer. This procedure can be used in parts b and d, andin many other situations, to see how changes in input variablesaffect the output variable.)An initial $200 compounded for 10 years at 6.7 percent.$ An initial $200 compounded for 10 years at 13.4 percent.$ The present value of $200 due in 10 years at a 6.7 percentdiscount rate.$ The present value of $200 due in 10 years at a 13.4 percentdiscount rate.$