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Find the future value of an investment of $5,400 made today for the following rates and periods:
6.25 compounded semi annually for 12 yrs.
FV 12 = 5400 x (1+ 0.06252 ) 2x12 = 5400 x (2.0928) = 11301.31
7.63 percent compounded quarterly for six years.
FV 6 = 5400 x (1+ 0.07634 ) 4x6 = 5400 x (2.4768) = 8498.48
8.9 percent compounded monthly for ten years.
FV 10 = 5400 x (1 + 0.08912 ) 12x10 = 5400 x (2.4271) = 13106.58
10 percent compounded daily for three years.
FV 365 = 5400 x (1+ 0.010365 ) 365x3 = 5400 x (1.3498) = 7288.94
8 percent compounded continuously for two years.
FV 2 = 5400 x e in = 5400 x e 0.08x2 = 5400 x 1.1735 =6336.96
Samantha is looking to invest some money so that she can collect $2,800 at the end of three years. What investment amount would be required in each of the following choices:
4.2 percent compounded daily
2800/(1+ 0.042/365 )365x3 = 2800/1.134189 = 2468.72
4.9 percent compounded monthly
2800/(1+ 0.049/12)12x3 =2800/1.157993 = 2417.98
5.2 percent compounded quarterly
2800/(1 + 0.052/4)4x3 =2800/1.167652 = 2397.97
5.4 percent compounded annually
2800/(1.054)3 = 2391.31

Present value with multiple cash flows:
Saul Cervantes has just purchased some equipment for his landscaping business. He plans to pay the following amounts at the end of the next five years: $9,944, $8,670, $12,320, $8,790, and $13,552. If he uses a discount rate of 5.216 percent, the cost of the equipment he purchased today is:
N = 5
I = 5.216 or 1.05216
End Year 1
9944/1.05216 = 9451.03
End Year 2
8670/(1.05216)2 = 7831.69
End Year 3
12320/(1.05216)3 = 10577.07
End Year 4
8790/(1.05216)4 = 7172.35
End Year 5
13552/(1.05216)5 = 10509.80
9451.03+7831.69+10577.07+7172.35+10509.80 = 45541.94

Present value with multiple cash flows: Biogenesis Inc., expects the following cash flow stream over the next five years: 1 | 2 | 3 | 4 | 5 |

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