Financial Management: Core Concepts, Third Edition

Problems

These problems are available in MyFinanceLab.

1. Future values. Fill in the future values for the following table

   1. using the future value formula, $FV=PV\times {\left(1+r\right)}^n$.

   2. using the TVM keys or function from a calculator or spreadsheet.

      Present Value	Interest Rate	Number of Periods	Future Value
      $ 400.00	5.0%	5
      $ 17,411.00	6.0%	30
      $35,000.00	10.0%	20
      $ 26,981.75	16.0%	15

2. Future value (with changing years) . Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has $7,000 for his CD investment. If the bank is offering a 6% interest rate, how much will the CD be worth at maturity if Jonathan picks a

   1. two-year investment period?

   2. five-year investment period? ...