find the present value of the future value.
$5000, invested for 9 years at 6% compounded quarterly
2007-07-22 15:18:01 · 5 answers · asked by Susan 2 in Business & Finance ➔ Investing
it's homework. that's all it says.
2007-07-22 15:31:32 · update #1
The present value of $5,000 after 9 years of quarterly compounding at a rate of 6% payable per quarter is $613.704.
The compounding rate is important and I want to make sure you understand - this is the answer if the 6% is payable every quarter, and not an annual rate.
If the 6% is an annual rate compounding quarterly, the answer is $2925.45.
2007-07-27 08:35:24 · answer #1 · answered by PK 5 · 0⤊ 0⤋
If $5000 is the future value, then if you had invested $650.53 at interest of 6% per quarter, then in 9 year you will have the $5000.
2007-07-30 21:29:29 · answer #2 · answered by trader 4 · 0⤊ 0⤋
your problem is worded incorrectly, or lacks some critical information.
you give us only three data bits ... an amount but not a frequency [one time, every month, etc.] and lacking when the amount is available, a period, and an interest rate.
if you wish to calculate a present value, you must supply the discount rate to be used ... unless it is the same 6% annual rate, in which case the present value of the future value is the present amount.
please clarify
2007-07-22 22:25:21 · answer #3 · answered by Spock (rhp) 7 · 0⤊ 2⤋
More info please 6% Quarterly 8545.64 or 6% annually is 2500 rounded.
2007-07-29 13:55:14 · answer #4 · answered by bryan50502003 1 · 0⤊ 0⤋
$8545.6852
2007-07-23 04:40:20 · answer #5 · answered by Dean * 4 · 0⤊ 1⤋