00:01
Hello everyone, in this problem we need to solve the given questions by using the two formulas future value to be equal to present value of 1 plus i the whole power n and for the present value p we can obtain by future value multiplied by 1 plus i the whole power minus n.
00:19
So, in the first part of the question we need to find the future value if the present value is given as 12 ,100 dollars with the value of n to be 13 by 4 multiplied by 12 and the value of i to be 0 .025 divided by 12.
00:50
So, now substituting all these values in order to calculate the future value in this formula.
00:55
So, we get fv to be equal to 12100 multiplied by 1 plus 0 .025 divided by 12 the whole power 13 by 4 multiplied by 12.
01:14
So, simplifying this we have the approximate future value it would be 13123 .06 dollars.
01:26
So, now let us move on to the next part of the problem where we are given with the we need to find the future value with the present value pv given here as 8500 dollars with the period of n here is given as 11 by 2 it is 5 and a half years and it is compounded quarterly.
01:57
So, it is of 11 by 2 multiplied by 4 and high value here is of interest is given as of 0 .095 divided by.
02:11
So, now substituting all these values here as it is compounded quarterly.
02:18
So, all these values here the future value we have fv to be equal to 8500 multiplied by 1 plus i is 0 .095 divided by 4 the whole power 11 by 2 multiplied by 4.
02:35
So, simplifying all these values we have the future value it would be approximately equal to 14245 .74 dollars.
02:47
So, here in the next part of the problem we need to find the maturity value when it is given the present value as 5000 dollars which is invested at the rate of 3 percentage which is compounded semi -annually.
03:03
So, here the i value will be 0 .03 divided by 2 and here n is of for 7 years.
03:12
So, it is 7 multiplied by 2 as it is compounded semi -annually.
03:17
So, we need to find the future value substituting all these values in the future value formula it would be 5000 multiplied by 1 plus 0 .03 divided by 2 the whole power 7 multiplied by 2 which is of 14.
03:34
So, simplifying all these values we have the value of the future value to be approximately equal to 6158 .78 dollars...