Asked by Andreea Polonic on May 17, 2024
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Compute the present value (principal) and the compound interest earned for each of the following investments. Use Tables 16-1A&B or 16-2A&B or a calculator.
Present Value
The today's value of a sum of money expected in the future or successive cash flows, considering a determined rate of return.
Compound Interest
Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.
Future Value
An estimated future value of a present asset, projected by applying an anticipated growth rate over time.
- Absorb the essentials of present value and its impact on planning for future investments.
- Build capacity in leveraging financial tables and calculators for the projection of future values and compound interest.
- Grasp the idea of compound interest and the procedure for its computation.
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Learning Objectives
- Absorb the essentials of present value and its impact on planning for future investments.
- Build capacity in leveraging financial tables and calculators for the projection of future values and compound interest.
- Grasp the idea of compound interest and the procedure for its computation.
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