Hca 270 Week 4
Present and Future Value
HCA 270
Calculate the future value of the following: * $5,000 compounded annually at 6% for 5 years $6,691.13 * $5,000 compounded semiannually at 6% for 5 years $6719.58 * $5,000 compounded quarterly at 6% for 5 years $6734.28 * $5,000 compounded annually at 6% for 6 years $7092.60 Answer the following: The conclusion that can be drawn about the frequency of compounding interest is that the more frequency the better. The conclusion that can be drawn about the length of time an amount is compounding is the same the more or longer the better. It just keeps adding up. Calculate the present value of the following: * $7,000 in 5 years at an annual discount rate of 6%
HCA 270
Calculate the future value of the following: * $5,000 compounded annually at 6% for 5 years $6,691.13 * $5,000 compounded semiannually at 6% for 5 years $6719.58 * $5,000 compounded quarterly at 6% for 5 years $6734.28 * $5,000 compounded annually at 6% for 6 years $7092.60 Answer the following: The conclusion that can be drawn about the frequency of compounding interest is that the more frequency the better. The conclusion that can be drawn about the length of time an amount is compounding is the same the more or longer the better. It just keeps adding up. Calculate the present value of the following: * $7,000 in 5 years at an annual discount rate of 6%