To calculate the present value (PV) of $30,000 receivable at the end of each of the 8 periods, compounded at 12 percent, we can use the formula for the present value of an annuity:
[ PV = P \times \frac{1 - (1 + r)^{-n}}{r} ]
where ( P ) is the payment amount ($30,000), ( r ) is the interest rate per period (0.12), and ( n ) is the total number of periods (8). Substituting the values, we find:
[ PV = 30,000 \times \frac{1 - (1 + 0.12)^{-8}}{0.12} \approx 30,000 \times 5.657 \approx 169,710 ]
Thus, the present value is approximately $169,710.
3400*108.9%=3702.603702.60*108.9%=4032.134390.994781.795207.375670.826175.536725.157323.697975.508685.329458.3110300.1011216.8112215.1013302.2514486.1515775.4117179.4318708.39...60. 563,037.12
THe factors are the same
Future value (compounded) = P * (1 + i)^nThe caret symbol (^) means 'raise to the power of n'P is the present value (in this case $70000)n is the number of compounding periods (annual for 3 years, n=3)i is interest rate per period (12% = 0.12)FV = $70000 * (1 + 0.12)3 = $70000 * (1.404928) = $98344.96
It will take 12.75 periods.
To find the equivalent amount 1.5 years from now for $7,000 due in 8 years at a 6% interest rate compounded semiannually, we first calculate the present value of $7,000 at that point in time. The interest rate per period is 3% (6%/2), and there are 16 periods (8 years × 2). Using the present value formula ( PV = FV / (1 + r)^n ), we find the present value of $7,000 in 1.5 years (3 periods), which can be calculated as ( 7000 / (1 + 0.03)^{16} ) to find its value at that time. Finally, we calculate that present value and then determine its future value 1.5 years from now.
There is no such thing as "compounded continuously". No matter how short it may be, the compounding interval is a definite amount of time and no less.
3400*108.9%=3702.603702.60*108.9%=4032.134390.994781.795207.375670.826175.536725.157323.697975.508685.329458.3110300.1011216.8112215.1013302.2514486.1515775.4117179.4318708.39...60. 563,037.12
$5,790
THe factors are the same
Future value (compounded) = P * (1 + i)^nThe caret symbol (^) means 'raise to the power of n'P is the present value (in this case $70000)n is the number of compounding periods (annual for 3 years, n=3)i is interest rate per period (12% = 0.12)FV = $70000 * (1 + 0.12)3 = $70000 * (1.404928) = $98344.96
It will take 12.75 periods.
To find the equivalent amount 1.5 years from now for $7,000 due in 8 years at a 6% interest rate compounded semiannually, we first calculate the present value of $7,000 at that point in time. The interest rate per period is 3% (6%/2), and there are 16 periods (8 years × 2). Using the present value formula ( PV = FV / (1 + r)^n ), we find the present value of $7,000 in 1.5 years (3 periods), which can be calculated as ( 7000 / (1 + 0.03)^{16} ) to find its value at that time. Finally, we calculate that present value and then determine its future value 1.5 years from now.
If it's 12% per year, compounded annually, then it is: 100 * (1 + 0.12)-2 = 79.72
For compound interest F = P*(1 + i)^n. Where P is the Present Value, i is the interest rate per compounding period, and n is the number of periods, and F is the Future Value.F = (9000)*(1 + .08)^5 = 13223.95 and the amount of interest earned is 13223.95 - 9000 = 4223.95
If a sum of money was invested 36 months ago at 8% annual compounded monthly,and it amounts to $2,000 today, thenP x ( 1 + [ 2/3% ] )36 = 2,000P = 2,000 / ( 1 + [ 2/3% ] )36 = 1,574.51
Periods are horizontal rows. 7 periods are present in modern periodic table.
After 1 year, you would have 2,500 * 1.03 = 2,575. After the 2nd year you would have 2,575 * 1.03 = 2,652.25. After the 3rd year you would have 2,652.25 * 1.03 = 2731.8175 or rounded to $2,731.82. The formula for this is FV = PV * (1+i)^n, where FV = future value, PV = present value, i = interest rate per compounding period, and n = number of periods.