# finance data bank

Question # 00003767 Posted By: spqr Updated on: 11/19/2013 10:42 PM Due on: 11/30/2013
Question

Question 1 Find the following present and future values:

 Present and future values
a. An initial £ 500 compounded for 1 year at 6 percent.

b. An initial £ 500 compounded for 2 years at 6 percent.

c. The present value of £ 500 due in 1 year at a discount rate of 6 percent.

d. The present value of £ 500 due in 2 years at a discount rate of 6 percent.

Question 2 Suppose John deposits £ 10,000 in a bank account that pays 10 percent interest annually. How much money will be in his account after 5 years?

Question 3 What is the present value of a security that promises to pay you £ 5,000 in 20 years? Assume that you can earn 7 percent if you were to invest in other securities of equal risk?

Question 4 If you deposit money today into an account that pays 6.5 percent interest, how long will it take for you to double your money

question 5

Your broker offers to sell a note for £ 13250 that will pay £ 2345.05 per year for 10 years. If you buy the note, what rate of interest will you be earning? Calculate to the closest percentage

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