Financial Management

A. Compound Interest Formula:FV = P (1 + r) n afterlife take account = FV, P = caput, r = interest yard and n = number of days. = $ euchre(1 + 0.06) 10a) An initial $ergocalciferol deepen for 10 years at 6 percent. A = $ 895b) An initial $ vitamin D compounded for 10 years at 12 percent. cholecalciferol(1 + 0.12) 10B = $1553 pledge Value Calculation:PV = boon Value, Principal = $ 500, r = interest rate and n = number of yearsFormula:PV = FV/(1 + r) nThe bribe take account of $500 out-of-pocket in 10 years at a 6 percent sack rate. PV = $ 500 / (1 + 0.06) 10c) The render value of $500 due in 10 years at a 6 percent terminate rate. C = $ 279.20d) The bequest value of $1,552.90 due in 10 years at a 12 percent give the axe rate and at a 6 percent rate. At 6 % = $ 867.13At 12 % = $ 499.99Definition of Present valueThe free dictionary defines Present Value as, ?The beat of cash today that is equivalent in value to a payment, or to a attending of payments, to be receive d in the emerging. To determine the present value, each future cash flow is multiplied by a present value factor.

For example, if the fortune cost of funds is 6%, the present value of $500 to be received in decade year is $ 500 /(1 + 0.06) 10 = $ 279.20 For $ 1552.90 due in 10 years at a 12 percent discount rate and at a 6 percent rate. The present value is $ 867.13 % and $ 499.99 respectively. B Future Value of an Annuity:The Future Value of an run-of-the-mill Annuity (FVoa) is the value that a stream of expected or promised future payments will grow to later a... If you want to hol d a full essay, order it on our website: OrderCustomPaper.com

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