1. James plans to fund his individual retirement account‚ beginning today‚ with 20 annual deposits of $2‚000‚ which he will continue for the next 20 years. If he can earn an annual compound rate of 8 percent on his deposits‚ the amount in the account upon retirement will be 98845.84(since it is a retirement plan so‚ assumed to be annuity due) correct 91‚523.93 – ordinary annuity in this accumulation phase. 2. $100 is received at the beginning of year 1‚ $200 is received at the beginning of year
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if the interest rate is a compound interest rate? * 2. Find the present value of $7‚000 to be received one year from now assuming a 3 percent annual discount interest rate. Also calculate the present value if the $7‚000 is received after two years. * * * * 3. Determine the future value at the end of two years of an investment of $3‚000 made now and an additional $3‚000 made one year from now if the compound annual interest rate is 4
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Rogers Sporting Goods This is a family-owned retail store that sells fishing equipment‚ sporting and hunting gear. The store has been in existence for more than three decades now and the quality of their service keeps getting better. Their head offices are located in Missouri‚ USA. At Rogers Sporting goods‚ you can find all that you need for leisure and professional activities. The products that are featured include a variety of brands from different manufacturers. There are hunting equipment‚ archery
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TIME VALUE OF MONEY (CHAPTER 4) 1. Future value (FV)‚ the value of a present amount at a future date‚ is calculated by applying compound interest over a specific time period. Present value (PV)‚ represents the dollar value today of a future amount‚ or the amount you would invest today at a given interest rate for a specified time period to equal the future amount. Financial managers prefer present value to future value because they typically make decisions at time zero‚ before the start of a
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PREPOSITIONS WHAT ARE PREPOSITIONS? Prepositions are words that demonstrate association between a noun or pronoun and another word‚ that is‚ to show how they are joined with some other word in a sentence. Examples: 1. The book is on the bed. 2. The book is under the bed. The various prepositions‚ on and under‚ used before the noun bed show the different positions of the book with regard to the bed. It shows the relation between the book and the bed. This is the function of Preposition
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monthly deposits (set that to $0)‚ how much will you have at the end of four years? How much would you have at the end of four years if interest is compounded semiannually? 5‚524.14 are what will be after four years with Simi annual intrust compound. 2. Change the interest rate to a higher rate. How much will you have at the end of four years if interest is compounded annually at a rate of 3%? How much would you have at the end of four years if interest is compounded semiannually? 5
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Good Shepherd Academy Poblacion II‚ Victoria‚ Oriental Mindoro SY 2014-2015 “Anti-Mosquito Candle made from Oregano (Oreganum vugare) Oil” Submitted by: Jed Ivan F. Fiedalan Submitted to: Mr. Jeffrey L. San Diego Date: February 20‚ 2015 Table of Contents I. Title page…………………………………………………………………………..1 II. Table of Contents………………………………………………………………….2 III. Abstract……………………………………………………………………………4 IV. Research Plan……………………………………………………………………...5-7 a. Rationale……………………………………………………………………
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that any proposed investment must pass. Example: Putting $100 in the bank Earn 6% interest After 1 year $106 $100 $106 Future Values and compound rate Future Value - Amount to which an investment will grow after earning interest. Simple Interest - Interest earned only on the original investment. Compound Interest - Interest earned on interest. - The sooner your money can earn interest‚ the faster the interest can earn interest. Future Values Example - Simple
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value‚ P = Present value‚ i = Interest rate. At the end of five years: F = P(1 + in) where n = number of years. 16 = 10(1 + 0.12 × 5) Glen Arnold‚ Corporate Financial Management‚ 5th Edition © Pearson Education Limited 2013 Slide 4.3 Compound interest An investment of £10‚ an interest rate of 12 per cent. In one year the capital will grow by 12 per cent to £11.20. At the end of two years: F = P(1 + i) (1 + i) F = 11.20 (1 + i) Alternatively‚ F = P(1 + i)2 £10 × 1.2544 = £12
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states of matter: solid‚ liquid‚ gas. Solid- definite shape and volume Liquid- definite volume no shape Gas- No nothing -A substance with fixed proportions are called PURE SUBSTANCE. The two types of pure substances are element and compound. COMPOUND are composed of two or more types of ATOMS. ELEMENTS are composed of only one kind of ATOM. -A substance without fixed proportions is called a MIXTURE. In a MIXTURE‚ the substances that composes it still retains its own chemical properties
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