To find the future value of the investment, we can use the formula for the future value of an annuity:
FV = PMT x ((1 + r)^n - 1) / r
where:
PMT = the amount of each installment payment
r = the interest rate per period
n = the number of periods
In this case, PMT = Br . 100000 / 5 = Br . 20000 (since the loan is to be repaid in 5 equal installments), r = 10% (since the interest rate is 10% per year), and n = 5 (since there are 5 payment periods).
Plugging these values into the formula, we get:
FV = Br . 20000 x ((1 + 0.10)^5 - 1) / 0.10
FV = Br . 20000 x (1.61051 - 1) / 0.10
FV = Br . 20000 x 0.61051 / 0.10
FV = Br . 122102.00
Therefore, the future value of the investment is Br . 122102.00.
Find the future value of an investment if Br . 100000 loan to be repaid in equal installment at the end of each of the next 5 years ? The interest rate is 10% compounded annually.
3 answers
How much must you deposit now on January 12017 to have a balance of bro 10000 on December 31 2025 ? interest is compounded vst 8% annual rate .
To find out how much you must deposit now to have a balance of Br. 10000 on December 31, 2025, we can use the present value formula:
PV = FV / (1 + r)^n
where:
PV = present value
FV = future value
r = interest rate per period (annual rate divided by the number of compounding periods per year)
n = number of periods
In this case, we need to find the present value of a future value of Br. 10000 on December 31, 2025, using an annual interest rate of 8%.
The number of years between January 1, 2017, and December 31, 2025, is 9. So, n = 9.
Plugging these values into the formula:
PV = 10000 / (1 + 0.08/1)^9
PV = 10000 / (1.08)^9
PV = 4713.58
Therefore, you must deposit Br. 4,713.58 on January 1, 2017, to have a balance of Br. 10,000 on December 31, 2025, assuming an annual interest rate of 8% compounded annually.
PV = FV / (1 + r)^n
where:
PV = present value
FV = future value
r = interest rate per period (annual rate divided by the number of compounding periods per year)
n = number of periods
In this case, we need to find the present value of a future value of Br. 10000 on December 31, 2025, using an annual interest rate of 8%.
The number of years between January 1, 2017, and December 31, 2025, is 9. So, n = 9.
Plugging these values into the formula:
PV = 10000 / (1 + 0.08/1)^9
PV = 10000 / (1.08)^9
PV = 4713.58
Therefore, you must deposit Br. 4,713.58 on January 1, 2017, to have a balance of Br. 10,000 on December 31, 2025, assuming an annual interest rate of 8% compounded annually.
1 answer