Question

Calculate the future value in six years of $5,000 received today if your investments pay (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Future Value
a. 5 percent compounded annually $
b. 7 percent compounded annually
c. 9 percent compounded annually
d. 9 percent compounded semiannually
e. 9 percent compounded quarterly

Answer 1

Instructions are listed below.

Step-by-step explanation:

Giving the following information:

The future value in six years of $5,000 received today:

A) i=0.05 annually

FV= PV*(1+i)^n

FV= 5,000*(1.05)^6= $6,700.48

B) i=0.07 annually

FV= 5,000*(1.07)^6= $7,503.65

C) i=0.09 annually

FV= 5,000*(1.09)^6= $8,385.50

D) i= 0.09 semiannually= 0.045

FV= 5,000*(1.045)^12= $8,479.41

E) i=0.09 quaterly= 0.0225

n= 6*4= 24

FV= 5,000*(1.0225)^24= $8,528.83