Present and future values for different interest rates Find the following values. Compounding/discou

QUESTION

Present and future values for different interest
rates
Find the following values. Compounding/discounting occurs
annually. Round your answers to the nearest cent.
An initial $500 compounded for 10 years at 7%.
$
An initial $500 compounded for 10 years at 14%.
$
The present value of $500 due in 10 year at a discount rate of
7%.
$
The present value of $2,845 due in 10 years at 14%.
$
The present value of $2,845 due in 10 years at 7%.
$
Growth rates
Shalit Corporations 2011 sales were $7 million. Its 2006 sales
were $3.5 million.
At what rate have sales been growing? Round your answer to two
decimal places.
%
Effective rate of interest
Find the interest rates earned on each of the following. Round
each answer to two decimal places.
You borrow $650 and promise to pay back $728 at the end of 1
year.
%
You lend $650 and the borrower promises to pay you $728 at the
end of 1 year.
%
You borrow $65,000 and promise to pay back $120,311 at the end
of 8 years.
%
You borrow $16,000 and promise to make payments of $5,001.00 at
the end of each year for 5 years.
%
1) FV = 500 * (1 + .07)^10 = 983.58 2) FV = 500 * (1 + .14)^10 = 1853.61 3) PV = 500 / (1 + .07)^10 = 254.17 4) PV = 2845 / (1 + .14)^14 = 454.37 5) PV = 2845 / (1 + .07)^10 = 1103.34 Growth rates: 1) Growth rate = (7 / 3

ANSWER:

CLICK REQUEST FOR  AN EXPERT SOLUTION