$5,000 compounded annually at 6% for 5 years
o $5,000 compounded semiannually at 6% for 5 years
o $5,000 compounded quarterly at 6% for 5 years
o $5,000 compounded annually at 6% for 6 years
Answer the following: What conclusions can be drawn about the frequency of compounding interest? What conclusions can be drawn about the length of time an amount is compounding?
Calculate the present value of the following:
o $7,000 in 5 years at an annual discount rate of 6%
o $7,000 in 5 years at a semiannual discount rate of 6%
o $7,000 in 5 years at a quarterly discount rate of 6%
o $7,000 in 6 years at an annual discount rate of 6%
Answer the following: What conclusions can be drawn about the frequency of the discounting interval? What conclusions can be drawn about the length of time until the receipt of that value?
Answer the following: Assume you have a choice between two annuity contracts. Contract A pays $5,000 per year for 5 years starting one year from today. Contract B pays $5,000 per year for 5 years starting today. The discount rate for each is 6%. Which annuity contract would you choose for your retirement? Why?
I am really not good at this please help.
Appreciate ur time and help!
Jon P
May 1, 2010 at 1:29 pm
A = P(1 + (r/m))^(tm)
revo emag
May 1, 2010 at 1:59 pm
You’re not going to get any better, either, as long as you have someone else doing your work for you. And to have someone else do your work for you in the real world, you have to have a college education. How are you going to get a college education as long as you have someone else doing your work for you?
AC
May 1, 2010 at 2:23 pm
A = P(1+r)^n
A = balance
P = principle (amount invested)
r = rate
t = number of times interest paid
1. A = 5000(1+.06)^5
$6691.13
A = 5000(1+.06)^10
$8954.24
A = 5000(1.06)^20
A = $16035.68
A = 5000(1.06)^6
A = $7092.60