Future value of a lump sum investment


Question 1. Calculate the future value of a lump sum investment that has the following characteristics: (a) 30 Years until Maturity, (b) $10,000 invested today, (c) Quarterly Compounding, and (d) A Interest Rate of 5%.

Question 2. Calculate the present value of a lump sum investment that has the following characteristics: (a) 20 Years until Maturity, (b) A Future Value of $1,000,000, (c) Daily Compounding, and (d) A 10% Rate of Interest.

Question 3. Calculate the number of years that it would take for you to amass $50,000, if you had $10,000 to invest today, in an investment vehicle offering 20% per year.

Question 4. Calculate the interest rate that you would receive if you put $20,000 a way today and were able to take out $100,000 in 15 years.

Question 5. What is the present value of an ordinary annuity that will pay you $2,456 for 5 years, given that you can obtain a 10% rate of return on your investment?

Question 6. What is the present value of an annuity due that will pay you $33,155 for 10 years, given that the market rate of interest is 5%?

Question 7. Calculate the monthly payment on a mortgage that costs $350,000. Assume that you put $20,000 down, your loan was a 30-year fixed loan, and your interest rate was 4.57%.

Question 8. If you saved $155 per month for 25 years and were able to obtain a 6% rate of return on your investâ?"how much money would you have saved up after 25 years?

Question 9: Determine the maximum price that you would be willing to pay for a 'non-constant growth' stock with the following characteristics: (a) Year 1â?"Negative Growth Rate of 4%, (b) Years 2-5â?"Positive Growth Rate of 15%, (c) The Growth Rate Thereafter 7%, and (d) Investor's Require a 10% Rate of Return. $3.00 dividend that was just paid

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Finance Basics: Future value of a lump sum investment
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