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Compound Interest Factors Are Provided Below Using the Above Factors, Answer Each of the Following Questions

Question 120

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Compound interest factors are provided below: 5%,n=105%,n=2010%,n=1010%,n=20 Future value of a single sum 1.6292.6532.5946.728 Future value of an ordinary annuity 12.57833.06715.93757.275 Present value of a single sum 0.6140.3770.3860.149 Present value of an ordinary annuity 7.72212.4626.1458.514 Present value of an annuity due 8.10813.0856.7599.365\begin{array}{lcccc}&5\%,n=10&5\%,n=20&10\%,n=10&10\%,n=20\\\hline\text { Future value of a single sum } & 1.629 & 2.653 & 2.594 & 6.728 \\\text { Future value of an ordinary annuity } & 12.578 & 33.067 & 15.937 & 57.275 \\\text { Present value of a single sum } & 0.614 & 0.377 & 0.386 & 0.149 \\\text { Present value of an ordinary annuity } & 7.722 & 12.462 & 6.145 & 8.514 \\\text { Present value of an annuity due } & 8.108 & 13.085 & 6.759 & 9.365 \\\end{array}
Using the above factors, answer each of the following questions.
a. How much will you have in 10 years if you invest $30,000 in an investment that earns 10%
semiannually?
b. How much do you have to invest today to have $30,000 in 10 years if the investment earns
10% annually?
c. How much will you have in 10 ysears if you invest $15,000 at the end of each year in an investment earning 10% annually?
d. How much do you have to invest today and every six months thereafter for the next 10 years if you want to accumulate a total of $400,000 10 years from today in an investment paying 10% semiannually?

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a. Future value, 5%, 20 periods: $30,000...

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