The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is: (blank). | Homework.Study.com (2024)

Copyright

Business Finance Future value

Question:

The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is: _____.

Future Value:

This represents the value of a present amount of money in a specified future period using a specified interest rate of return. It can be presented in lump sum, ordinary annuity, and annuity due.

Answer and Explanation:1

The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24.

It is computed as...

See full answer below.

Become a member and unlock all StudyAnswers

Start today. Try it now

Create an account

Ask a question

Our experts can answer your tough homework and study questions.

Ask a question Ask a question

Search Answers

Learn more about this topic:

Future Value Definition Formula & Examples

from

Chapter 5/ Lesson 16

40K

Understand the definition of future value and the future value formula. Explore some examples that show how to calculate the future value of an investment.

Related to this Question

  • What is the future value in five years of $1,500 invested in an account with an annual percentage rate of 10 percent, compounded continuously?
  • What is the future value in five years of $1,500 invested in an account with an annual percentage rate of 10 percent, compounded monthly?
  • What is the future value of $442 a year for 7 years at 11 percent compounded annually?
  • What is the future value of $748 a year for 9 years at 12 percent compounded annually?
  • What is the future value of $557 a year for 12 years at 5 percent compounded annually?
  • What is the future value of $800 invested for 14 years at 11 percent compounded annually?
  • What is the future value of $650 invested for 12 years at 8 percent compounded annually?
  • What is the future value of $210 invested for 8 years at 9 percent compounded annually?
  • What is the future value in seven years of $1,000 invested in an account with a stated annual interest rate of 8 percent, compounded annually?
  • What is the future value 3 years from now of $1,000 invested today in an account with a stated annual interest of 8% (a) compounded annually? (b) compounded semiannually? (c) compounded monthly? (d) compounded continuously?
  • What is the future value of $1280 in thirteen years, assuming an interest rate of 11% compounded half-yearly?
  • What is the future value of $1,200 a year for 40 years at 8 percent interest?
  • If $500 is invested at an annual interest rate of 8% per year, its future worth at the end of 30 years will be most nearly: a. $1, 200. b. $1,700. c. $5,031. d. $15,000.
  • What is the future value of $400 deposited for one year earning an interest rate of 9 percent per year?
  • What is the future value of $1,000 a year for 40 years at 10percent interest? Assume annual compounding. A) $301,115 B) $442,590 C) $259,056.52 D) $342,908
  • What is the future value of $800 in 23 years assuming an interest rate of 8 percent compounded semiannually?
  • What is the future value of $500 in 23 years assuming an interest rate of 11 percent compounded semiannually? a) $709.24 b) $5,575.79 c) $617.92 d) $5,869.26 e) $5,513.13
  • A $1,000 investment pays 10 percent compounded annually for 2 years; another pays 10 percent compounded semiannually for 2 years. Calculate the future value of both investments at the end of year 2.
  • What is the future value of $50,000 invested for 3 years at 8% interest?
  • What is the future value of $12,000 invested for 9 years at 3% interest?
  • What is the future value of $82,000 invested for 25 years at 12% Interest?
  • What is the future value of $100 invested for 4 years at 10% interest?
  • What is the future value of $700 deposited for one year earning a 4 percent interest rate annually?
  • What is the future value of a $500 investment earning 8 percent interest rate annually
  • What is the present value of an investment that will be worth $3,000 at the end of 5 years? Assume an APR of 6% compounded monthly.
  • (a) What is the future value of $7,000 at the end of 5 years at 8% compound interest? (b) What is the present value of $7,000 due 8 years hence, discounted at 11%? (c) What is the present value of $
  • What is the future value of $7,000 deposited for two years earning 8% interest rate annually? a. $1,165. b. $8,165. c. $7,000. d. $15,165.
  • What is the future value of $1 in period 4 when the interest rate is 5% per annum?
  • What is the future value of $7,960 at the end of 7 periods at 8% compounded interest?
  • What is the future value of $9,000 at the end of 5 periods at 8% compounded interest?
  • What is the future value of $7,000 at the end of 5 periods at 8% compounded interest?
  • What is the future value of $7,160 at the end of 5 periods at 8% compounded interest?
  • What is the future value of $8,380 at the end of 7 periods at 8% compounded interest (compounded each period)?
  • What is the future value in five years of $1,500 invested in an account with an annual percentage rate of 10 percent, compounded annually?
  • What is the future value in three years of $2,000 deposited today in a savings account with interest compounded annually at 4%?
  • What is the future value of $9,730 at the end of 8 periods at 8% compounded interest rate?
  • What is the future value in five years of $1,500 invested in an account with an annual percentage rate of 10 percent, compounded semiannually?
  • Five years from now an investment will be worth $5,000. If we invest it at 4% interest, compounded yearly, for five years, what is the present value of this investment?
  • What is the future value of a $250 annuity at the end of the next 5 years if the annual compounding rate is 10%?
  • What is the future value of $10,000 at 8% interest for 4 years?
  • What is the future value in seven years of $1,000 invested in an account with a stated annual interest rate of 8 percent, compounded monthly?
  • What is the future value in seven years of $1,000 invested in an account with a stated annual interest rate of 8 percent, compounded continuously?
  • What is the future value in seven years of $1,000 invested in an account with a stated annual interest rate of 8 percent, compounded semiannually?
  • What is the future value of $100 invested at the end of each year at 5% for 6 years?
  • What is the future value in 30 years of $100,000 invested today in a savings account earning a 1% compound interest rate every year? a. $130,000 b. $134,785 c. $30,000 d. More than $134,785
  • What is the future value of $10,000 invested in a 5 years Certificate of Deposit at 4% annually, with interest compounded semi-annually? Calculate the value at the end of 5 years, assuming that the i
  • What is the future value of a $700 annuity payment over 10 years if the interest rates are 7 percent? a. $9,671.51 b. $7,490.00 c. $6,641.02 d. $1,377.01
  • What is the future value of a $1,000 annuity payment over five years, if interest rates are 9 percent?
  • What is the future value of a $1,200 annuity payment over 10 years if the interest rates are 8 percent? a. $13,723.07 b. $17,383.87 c. $2,590.71 d. $12,960.00
  • What is the future value of a $930 annuity payment over five years if interest rates are 9 percent?
  • What is the future value of a $1,500 annuity payment over 8 years if the interest rates are 7 percent? a. $15,389.70. b. $13,384.21. c. $12,840.00. d. $2,577.28.
  • What is the future value of a $300 annuity payment over 6 years if the interest rates are 7 percent? a. $450.22 b. $2145.99 c. $2518.15 d. $1926.00
  • What is the future value of a $940 annuity payment over four years if interest rates are 8 percent?
  • A term investment of $85,000, is made for 10 years at 4.25% interest. Find the value of the investment at maturity if interest is compounded quarterly.
  • Suppose you invest $3,600 in an account bearing interest at the rate of 14 percent per year. What will be the future value of your investment in five years?
  • What is the future value of $50 in five years, if there is semi-annual compounding at an interest rate of 5%?
  • If you Invest $3.000 at the end of every year for nine years at an Interest rate of 5%. the balance of your Investment In 5 years will be closest to (The future value of annuity in this scenario is 5.526.) A. $16.578.B. $3.828.C. $12.987.D. $15.000.
  • The future value of equal semi-annual payments of $500 at 8% compounded semiannually for 4 years is: a. $868 b. $2,000 c. $9,320 d. $4,607
  • What is the future value of $300 deposited at the beginning of each month for 18 years earning 4% interest?
  • What is the future value of $1,300, placed in a saving account for four years if the account pays 9.00%, compounded quarterly?
  • What is the future value of $100 at an 8 percent interest rate 15 years in the future?
  • What is the future value of $500 invested at 8% for 1 year?
  • If you start making $60 monthly contributions today and continue them for five years, what's their future value if the compounding rate is 10.25 percent APR? What is the present value of this annuity?
  • Determine the future value of $11,000 under each of the following sets of assumptions: Annual RatePeriod InvestedInterest CompoundedFuture Value 1.8%8 yearsSemiannually$ 2.125 yearsQuarterly$ 3.1240 monthsMonthly$
  • Determine the future value of $27,000 under each of the following sets of assumptions: Annual Rate Period Invested Interest Compounded Future Value 1. 12% 6 years Semiannually 2. 20% 3 years Quarterly 3. 24% 30 months Monthly
  • Determine the future value of $22,000 under each of the following sets of assumptions. AnnualPeriod InvestedInterest Compoundedi=n=Present ValueFuture Value 1.12%10 yearsSemiannually$22,0
  • A 1,000 dollars investment pays 10 percent compounded annually for 2 years; another pays 10 percent compounded semiannually for 2 years. Calculate the future value of both investments at the end of year 2, and explain in words the numerical difference in
  • Find the future value and compound interest for a 3-year $5,000 investment that earns 6% compounded monthly.
  • What is the future value of $100 invested at 5% for 6 years?
  • What is the real future value of $10,000 which will sit in a savings account for 20 years, earning 4% interest compounded yearly during a period of 4% annual inflation?
  • Determine the future amount if $50,000 is invested today for 10 years, at 6 percent interest, compounded annually.
  • $9,000 is invested into a term deposit and will be worth $17,500 in ten years. What is the continuously compounded nominal (annual) interest rate for this deposit?
  • An investment of $100 pays an interest of 2.5% per quarter. What will be the value of this investment at the end of 3 years?
  • Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. a) What would be the future value if the interest rate is a simple interest rate? b) What would be the future value if the interest rate is a compound
  • If you deposit $3,000 at the end of each year for the next 5 years into an account that pays 8%annual interest, what is the future value?
  • If the current rate of interest is 10% and interest is compounded semiannually, what is the present value of receiving $10,000 at the end of 7 years?
  • Determine the future value of $19,000 under each of the following sets of assumptions: 1. Annual Rate of 10%, Period Invested of 8 years, Compounded Semiannually 2. Annual Rate of 12%, Period Investe
  • Find the present value of the following future amount of $9,000 at 3% compounded semiannually for 7 years.
  • Compute the future value in year 9 of a $2,000 deposit in year 1 and another $1,500 deposit at the end of year 3 using a 10 percent interest rate. 2. What is the future value of a $900 annuity pay
  • What is the future value of $1,100 placed in a savings account for four years if the account pays 9.00% compounded quarterly?
  • What is the future value of $1,100 placed in a savings account for 4 years if the account pays 7% compounded quarterly?
  • What is the future value of $1,000 placed in a savings account for four years if the account pays 8% compounded quarterly?
  • If an 8% interest rate is compounded twice a year for 10 years, then the future value would be calculated using an interest rate of A) 4%, compounded over 20 interest periods. B) None of the above. C) 16%, compounded over 20 interest periods. D) 4%, comp
  • What is the future worth of an equal payment series of $7,500 at the end of each month for five years if the interest rate is 8% compounded continuously?
  • Given a 7.25 percent interest rate, compute the year 8 future value of deposits made in years 1, 2, 3, and 4 of $1,200, $1,400, $1,700, and $1,700.
  • Given a 4 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,000, $1,200, $1,200, and $1,500.
  • An investment is expected to yield $300 in 3 years, $500 in 5 years, and $300 in 7 years. What is the present value of this investment if our opportunity rate is 5%? a. $735 b. $864 c. $885 d. $900
  • An investment is expected to yield $300 in three years, $500 in five years, and $300 in seven years. What is the present value of this investment if our opportunity rate is 5%? a. $735. b. $864. c. $885. d. $900.
  • What is the maturity value of $6,200 invested at 2% compounded semiannually for nine years?
  • Compute the future value in year 9 of a $5,400 deposit in year 1, and another $4,900 deposit at the end of year 5 using a 9 percent interest rate?
  • Compute the future value in year 7 of a $2,000 deposit in year 1 and another $2,500 deposit at the end of year 4 using an 8 percent interest rate.
  • Which of the following investments will have the highest future value at the end of 10 years? Assume that the annual percentage rate for all investments is the same. a. Investment A pays $250 at the beginning of every year for the next 10 years (a total
  • What is the future value of $1,500 after 5 years if the appropriate interest rate is 6%, compounded quarterly?
  • Calculate the future value FV of an investment of $10,000 at the stated interest rate after the stated amount of time. 7.5% per year, compounded daily (assume 365 days/year), after 12 years
  • What is the present value of $8,000 paid at the end of each of the next 97 years if the interest rate is 5% per year?
  • Interest is compounded quarterly on $100 deposited in the bank at 12% annual interest. After five years, the bank account will have grown to $100 times what future value factor? a) 20 periods at 3 percent b) 10 periods at 6 percent c) 5 periods at 12 perc
  • What is the present value of $20,000 per year for 10 years, assuming an 8% interest rate?
  • What is the future value of $450 six years from now at 7 percent?
  • Interest is compounded quarterly on $100 deposited in the bank at 12% annual interest. After five years, the bank account will have grown to $100 times what future value factor? a. 20 periods at 3 percent b. 5 periods at 12 percent c. 10 periods at 6 pe
  • Given a 5.25% interest rate, compute the year 7 future value of deposits made in years 1, 2, 3, and 4 of $500, $1,500, $2,500, and $1,000.

Explore our homework questions and answers library

Browseby subject

    • Math
    • Social Sciences
    • Science
    • Business
    • Humanities
    • History
    • Art and Design
    • Tech and Engineering
    • Health and Medicine

Ask a Question

To ask a site support question,click here

The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is: (blank). | Homework.Study.com (2024)

FAQs

What's the future value of $1000 investment compounded at 8% semi-annually for 5 years? ›

Answer and Explanation:

The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24.

What is 8% per year compounded semi-annually? ›

The effective rate of 8% compounded semi-annually is 8.16%.

What is the value in 5 years of $1000 invested today? ›

Simple Annual Interest

If a $1,000 investment is held for five years in a savings account with 10% simple interest paid annually, the FV of the $1,000 equals $1,000 × [1 + (0.10 x 5)], or $1,500.

How long will it take money to double if it is invested at 8% compounded semi-annually? ›

Answer and Explanation:

Since it is compounded semi-annually, the interest rate would be 8% / 2 = 4%. For semi-annual, the number of years would be 17.7 / 2 = 8.8. Hence, it will take 8.8 years to double the investment.

What is 8 compound interest on $1000? ›

For example, with an initial balance of $1,000 and an 8% interest rate compounded monthly over 20 years without additional deposits, the calculator shows a final balance of $4,926.80. The total compound interest earned is $3,926.80.

How do you calculate semiannual future value? ›

The resulting future value, based on a varying number of compounding periods, is:
  1. Annual compounding (n = 1): FV = $1,000,000 × [1 + (20%/1)] (1 x 1) = $1,200,000.
  2. Semi-annual compounding (n = 2): FV = $1,000,000 × [1 + (20%/2)] (2 x 1) = $1,210,000.

What does 8% compounded annually mean? ›

The math for compound interest is simple: Principal x interest = new balance. For example, a $10,000 investment that returns 8% every year, is worth $10,800 ($10,000 principal x . 08 interest = $10,800) after the first year. It grows to $11,664 ($10,800 principal x .

How much is $1000 worth at the end of 2 years if the interest rate of 6% is compounded daily? ›

Hence, if a two-year savings account containing $1,000 pays a 6% interest rate compounded daily, it will grow to $1,127.49 at the end of two years.

What is 10000 for 6 months at 2 per annum compounded quarterly? ›

In this case, P = 10000, r = 2, n = 4 (since the interest is compounded quarterly), and t = 6/12 = 0.5 (since the investment is held for 6 months, which is equivalent to 0.5 years). Therefore, the final amount, including interest, would be 22500 rupees.

What is the future value of $1000 in 5 years at 12% with annual compounding? ›

Answer and Explanation: The principal value is $1,000. The future value of $1,000 continuously compounded for five years at a stated annual interest rate of 12 percent is $1,822.12.

How much is $1000 invested today at 6 interest would be worth? ›

Answer: $1,000 invested today at 6% interest would be worth $1,060 one year from now. Let us solve this step by step.

How is 1000 5 interest compounded annually? ›

Suppose you have $1,000 in a savings account with a 5% interest rate and a 12-month compounding period. After one year, the original investment will earn $50 in interest (1,000 x 0.05 = $50). The interest accrued is added to the principal balance for a total of $1,050.

How long does it take for a deposit of $1000 to double at 8% compounded continuously? ›

The result is the number of years, approximately, it'll take for your money to double. For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.

How many years a sum of money doubles at the rate of 8%? ›

⇒T=1008=12.5 years. Was this answer helpful?

How long will it take money to triple if invested at 8% compound annually? ›

Answer and Explanation: The investment will take 14.27 years to triple at 8% interest rate.

What is the future value of $7000 at the end of 5 years at 8% interest compounded annually? ›

Answer and Explanation:

Thus, the future value of $7,000 at the end of 5 periods at 8% compounded interest is $10,285.30.

What is the future value of $800 at 8% after 6 years? ›

The future value of $800 at 8 percent after six years equals $1,269.50. Where, PV = Present value = $800. i = interest rate = 8%

What is the future value of $500 invested at 8 percent for 5 years? ›

The future value of $500 invested at 8 percent for five years Future value $500 * (1+ 0.08) ^5 Future Value = $734.66 c.

Top Articles
Latest Posts
Article information

Author: Melvina Ondricka

Last Updated:

Views: 6636

Rating: 4.8 / 5 (48 voted)

Reviews: 87% of readers found this page helpful

Author information

Name: Melvina Ondricka

Birthday: 2000-12-23

Address: Suite 382 139 Shaniqua Locks, Paulaborough, UT 90498

Phone: +636383657021

Job: Dynamic Government Specialist

Hobby: Kite flying, Watching movies, Knitting, Model building, Reading, Wood carving, Paintball

Introduction: My name is Melvina Ondricka, I am a helpful, fancy, friendly, innocent, outstanding, courageous, thoughtful person who loves writing and wants to share my knowledge and understanding with you.