Present Value
What is the Present Value of $100 in 1 year at 10% compounded annually?
$90.91
This type of interest earns on increasing sums of principal and accumulated interest over time.
What is compound interest?
What is the Future Value of a an annuity where you are making annual payments for 3 years at 5%?
$315.25
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Discounting
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What is the Future Value of $100 in 1 year at 10% compounded annually?
$110
Which key on the financial calculator is used to input an annuity (or a series of equal payments)?
PMT
If you invest $1,000 today at 6% annual compounding, what will it be worth in 30 years?
$580.54
Credit cards almost always have this compound frequency.
What is daily or 365/year?
What is the present value of $500 in 20 years at 7% compounded annually?
$1,293.78
What is the Future Value of $200 in 3 years at 5% compounded annually?
$231.53
What is the Present Value of an annuity (or future annual payment series) for 5 years at 6%?
$842.91
A parent wants to set aside money today for their child’s college tuition. They estimate they’ll need $50,000 in 15 years. If the account earns an annual return of 6% compounded annually,
$20,857.16
This is the name for compound interest frequency that occurs 4 times per year.
What is quarterly?
What is the Present Value of $500 in 5 years at 8% compounded annually?
$340.29
What is the Future Value of $1,000 in 8 years at 7% compounded annually?
$1,718.19
What is the Future Value of savings account contributions that you make EVERY YEAR for 10 years at 7%?
$6,908.07
You win a small lottery prize that promises to pay you $100,000 10 years from now. If you could invest the money at 8% compounded annually, what would the value of the prize be in today's dollars? HINT: Present Value Problem
$46,319.35
The value today of an amount to be received in the future after interest has been gained for a period of time.
What is present value?
What is the present value of $1000 in 10 years at 6% compounded SEMI-ANNUALLY?
$553.68
What is the Future Value of $2,500 at 6% compounded MONTHLY?
$5,126.88
What is the Present Value of a $1,000 payments (annuity) for 15 years at an 8% interest rate.
$8,559.48
If a car loan is $10,000 at 5% for 5 years, what is the MONTHLY payment? HINT: SOLVE FOR PMT & YOUR FV is 0 (because the loan will be paid off in 5 years)
$188.71
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