Compute the Present Value in Each of the Following Problems

question 34

Short Answer

Compute the present value in each of the following problems. Use Tables 16-1A&B or 16-2A&B or a calculator.
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a.How much must you invest today at 12% compounded monthly to have $10,000 in 2 years?
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b.Compute the amount that you must deposit today into an account that pays 5% compounded quarterly to have $15,000 in 5 years.

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Definitions:

Regression Trend Line

A statistical technique that attempts to determine the relationship between two or more variables by fitting a linear or non-linear line that best approximates the data.

Annual Energy Consumption

The total amount of energy used by a system, device, or facility within a year.

Seasonal Indexes

Quantitative measures that are utilized to adjust data for seasonal variations and effects, helping in analyzing and forecasting trends.

Seasonal Indexes

Factors used to adjust or measure variations in data due to seasonal effects over specific periods, often applied in forecasting and economic analysis to account for seasonal patterns.