What is the value of a $1000 investment that loses 5 each year for 8 years?
So, the value of the $1,000 investment after 8 years of losing 5% each year would be approximately $663.42. This calculation takes into account the compounding effect of the annual losses, resulting in a reduced investment value over time.
The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24. It is computed as follows: F u t u r e V a l u e = 1 , 000 ∗ ( 1 + i ) n.
Future Value Using Simple Annual Interest
For example, assume a $1,000 investment is held for five years in a savings account with 10% simple interest paid annually. In this case, the FV of the $1,000 initial investment is $1,000 × [1 + (0.10 x 5)], or $1,500.
Answer and Explanation:
Thus, the future value of $7,000 at the end of 5 periods at 8% compounded interest is $10,285.30.
The future value is $75,401.
Answer and Explanation: The principal value is $1,000. The future value of $1,000 continuously compounded for five years at a stated annual interest rate of 12 percent is $1,822.12.
Experts have been vetted by Chegg as specialists in this subject. >>>>> PV = Present Value = $1,000 n = 5 years r = Annual interest rate = 12% Future Value = PV * (1+r)^n = $1,000 * (1+12%)^5 = $1,000 * 1.762342 = $1,762.342 Future Value is $1,762.34 >>>> PV = Present Value = $1,000 n = 10 years r = Annual interest…
Answer and Explanation:
In this question, the initial investment is 1500, quarterly interest rate is 6%/4 = 1.5%, and there are 20 quarters in 5 years. Applying the formula, the future value is: 1500 ∗ ( 1 + 1.5 % ) 20 = 2 , 020.28.
Assuming an annual inflation rate of 5%, the value of one lakh will be about INR 37 thousand, INR 29 thousand, and INR 23 thousand after 20, 25, and 30 years, respectively.
If the insurer can expect to receive a 7 percent return on its $50,000, the monthly payout would rise to $449.96. At a 3 percent return, the payout would drop to $327.05. Insurers base their anticipated return on the performance of their often-conservative investment portfolios.
What is the return on a $100000 annuity?
For instance, a $100,000 annuity purchased at age 65 with immediate payments might yield about $614 monthly. If the annuity has a 5% interest rate over 10 years, the monthly payment could be approximately $1,055..
Guarantee period - This option allows you to choose a period of time, usually up to 10 years, which an income is guaranteed to be paid to a loved one for. For example, if you select a 10 year period and you die 5 years after buying an annuity, then an income will be paid to your loved one for another 5 years.
Therefore, the future value of the $1,000 invested for 15 years at a rate of 5% will be $1,000 × (1 + 0.05)15. Plugging these values into the formula results in Future Value = $1,000 × (1.05)15 = $2,079.
Correct Answer: Option C) $1,058.30.
$1,000 at 0.01 percent APY will only be $1,001 at the end of 10 years. But $1,000 at 5 percent APY will be $1,629 after 10 years.
The future value of $10,000 with 6 % interest after 5 years at simple interest will be $ 13,000.
How much interest can you earn on $1,000? If you're able to put away a bigger chunk of money, you'll earn more interest. Save $1,000 for a year at 0.01% APY, and you'll end up with $1,000.10. If you put the same $1,000 in a high-yield savings account that pays 5% APY, you could earn about $50 after a year.
Hence, if a two-year savings account containing $1,000 pays a 6% interest rate compounded daily, it will grow to $1,127.49 at the end of two years.
Answer and Explanation:
So, a $100 at the end of each year forever is worth $1,000 in today's terms.
An investment of $10000 today invested at 6% for five years at simple interest will be $13,000.
How many years will a sum of money becomes 5 times at 8%?
Expert-Verified Answer
Rate = 8% p.a. = 50 Years.
Answer and Explanation:
The future value of $800 at 8 percent after six years equals $1,269.50. Where, PV = Present value = $800. i = interest rate = 8%
Where P is principal amount, R is rate of interest and T will be time period. Hence, the rate of interest to double a money in 8 years will be 12.5% per annum.
For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money. Note that a compound annual return of 8% is plugged into this equation as 8, and not 0.08, giving a result of nine years (and not 900).
100×400/100×10=40 years . The sum will become 5 times itself after 40 years at 10%rate of interest.
