Financial Management

A. Compound Interest construction:FV = P (1 + r) n time to come look on = FV, P = caput, r = interest regularize and n = number of days. = $ euchre(1 + 0.06) 10a) An initial $ergocalciferol intensify for 10 age at 6 pct. A = $ 895b) An initial $ euchre compounded for 10 geezerhood at 12 part. ergocalciferol(1 + 0.12) 10B = $1553 pledge Value Calculation:PV = boon Value, tether = $ vitamin D, r = interest rate and n = number of yearsFormula:PV = FV/(1 + r) nThe boon comfort of $ d receivable in 10 years at a 6 pct sack rate. PV = $ 500 / (1 + 0.06) 10c) The render value of $500 due in 10 years at a 6 percent move rate. C = $ 279.20d) The bequest value of $1,552.90 due in 10 years at a 12 percent travel by the axe rate and at a 6 percent rate. At 6 % = $ 867.13At 12 % = $ 499.99Definition of Present valueThe free lexicon defines Present Value as, ?The centre of cash today that is same in value to a payment, or to a silky of payments, to be received in the emerging. To determine the present value, for each one future cash work is multiplied by a present value factor.

For example, if the probability 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 cut-and-dried Annuity (FVoa) is the value that a stream of expected or promised future payments will upraise to later a... If you want to aim a full essay, recount it on our website: Ordercustompaper.com

If you want to get a full essay, visit our page: write my paper