Relationship between discounting and compounding interest

Assignment Help Other Subject
Reference no: EM13774808

Develop a PowerPoint 10 slide presentation with introduction and conclusion that answers the following 12 questions

1. What is the relationship between discounting and compounding interest?

2. What is the relationship between the present-value factor and the annuity present-value factor?

3. What will $5,000 invested for 10 years at 8 percent compounded annually grow to? How many years will it take $400 to grow to $1,671 if it is invested at 10 percent compounded annually? At what rate would $1,000 have to be invested to grow to $4,046 in 10 years?

4. Calculate the future sum of $1,000, given that it will be held in the bank for 5 years and earn 10 percent compounded semiannually.

5. What is an annuity due? How does this differ from an ordinary annuity?

6. What is the present value of an ordinary annuity of $1,000 per year for 7 years discounted back to the present at 10 percent? What would be the present value if it were an annuity due?

7. What is the future value of an ordinary annuity of $1,000 per year for 7 years compounded at 10%? What would be the future value if it were an annuity due?

8. You have just borrowed $100,000, and you agree to pay it back over the next 25 years in 25 equal end-of-year payments plus 10 percent compound interest on the unpaid balance. What will be the size of these payments?

9. What is the present value of a $1,000 perpetuity discounted back to the present at 8 percent?

10. What is the present value of a $1,000 annuity for 10 years, with the first payment occurring at the end of year 10 (that is, ten $1,000 payments occurring at the end of year 10 through 19), given a discount rate of 10 percent?

11. Given a 10 percent discount rate, what is the present value of an perpetuity of $1,000 per year if the first payment does not begin until the end of year 10?

12. Describe how Matthew 25:14-30 relates to the time value of money and concepts included in the various questions.

Reference no: EM13774808

Questions Cloud

Analyze the poem song lyric using poetry formalist elements : To analyze the poem(s) / song lyric(s) using poetry formalist elements. To use outside research to expand the analysis / discussion of the short story through either application of a school of critical theory.
Writing a chemical equation with chemical symbols : What are the advantages and disadvantages of writing a chemical equation with chemical symbols and formulas instead of just words?
Unethical behavior impacts employers : Describe a personal experience with someone or a group of people not following those ethics. How do you think unethical behavior impacts employers? Explain.
How do bacteria eat : How do bacteria eat? How is their eating style similar to what we see in mammals? How is mammalian digestion more efficient than the type of digestion seen in bacteria?
Relationship between discounting and compounding interest : 1. What is the relationship between discounting and compounding interest? 2. What is the relationship between the present-value factor and the annuity present-value factor?
Explain least two social media and networking technologies : Analyze how the university might integrate at least two social media and networking technologies to accomplish their goals. Your analysis must cover the advantages and disadvantages of social networking. The president of the university also needs ..
Evaluation of the australian healthcare system : What changes are needed to make the healthcare system efficient and effective?
Identify and summarize essential points made by the writers : identify and summarize essential points made by the writers and compare/contrast those points, based on what the writers argue. Such analysis of sources is a common practice both in college writing and in the writing of scholars.
What would you say to next responders coming on scene : What advice would you give to any other individuals or drivers coming upon the scene and what would you say to the next responders coming on the scene?

Reviews

Write a Review

 

Other Subject Questions & Answers

  What are common stereotypes of the specific minority groups

What are common stereotypes of the specific minority groups explained in the training guide? How may one differentiate those stereotypes from accurate descriptions of the minority groups?

  Legal drinking age a form of discrimination

Is the legal drinking age a form of discrimination.

  Was this a just result under nozicks view of property right

In 1962, the Atlantic Cement Company began operating a cement plant outside of Albany, New York. The company employed over 300 local residents, and by 1970, had invested $45 million in the plant. The plant emitted large amounts of pollution, however,..

  Kind of databases and database servers does myspace use

What kind of databases and database servers does MySpace use? Why is database technology so important for a business such as MySpace? How effectively does MySpace organize and store the data on its site?

  Analysis of us congress-membership

Look at the current make-up of Congress, paying special attention to the number of minorities and female members of Congress. How has this current make-up

  Discuss the ethical and legal considerations

In two paragraphs discuss the ethical and legal considerations of working with juvenile delinquents. or youth who are at risk for becoming delinquents

  Rights pertaining to arrest

Discuss the procedures used in other countries to inform people about their rights pertaining to arrest.

  Analyze how ethics affect psychological knowledge and

completenbspthe ethics awareness inventory located on the student website.preparenbspa 700- to 1050-word summary of the

  Higher reimbursement than the procedure

What term is used when a clinician knowingly submits a CPT code that provides higher reimbursement than the procedure that was actually performed?

  Generational differences and age groups

Generational differences and age groups are part of diversity. Sometimes people forget that these are important categories in the context of diversity. Think about your own experiences working with older or younger generations.

  Alternative funding brainstorm ideas for alternative

alternative funding brainstorm ideas for alternative funding for the program you selected from appendix b. search the

  History and social sciences

Have you heard of william reese, newport ri school/college teacher art history, history and social sciences?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd