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98A5DC87C6F

Published on December 2, 2015

For more course tutorials visit www.uophelp.com Resource: Ch. 5 of the text Due Date: Day 5 [Individual forum] Calculate the future value of the following: $5,000 compounded annually at 6% for 5 years $5,000 compounded semiannually at 6% for 5 years $5,000 compounded quarterly at 6% for 5 years $5,000 compounded annually at 6% for 6 years Answer the following: What conclusions can be drawn about the frequency of compounding interest? What conclusions can be drawn about the length of time an amount is compounding? Calculate the present value of the following: $7,000 in 5 years at an annual discount rate of 6% $7,000 in 5 years at a semiannual discount rate of 6% $7,000 in 5 years at a quarterly discount rate of 6% $7,000 in 6 years at an annual discount rate of 6% Answer the following: What conclusions can be drawn about the frequency of the discounting interval? What conclusions can be drawn about the length of time until the receipt of that value? Answer the following: Assume you have a choice between two annuity contracts. Contract A pays $5,000 per year for 5 years starting one year from today. Contract B pays $5,000 per year HCA 270 Financial Matters for Health Care Professionals Course Syllabus Page 11 for 5 years starting today. The discount rate for each is 6%. Which annuity contract would you choose for your retirement? Why? Post your calculations and answers as a Microsoft® Word attachment