{"id":109483,"date":"2022-12-10T12:30:26","date_gmt":"2022-12-10T12:30:26","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/future-values-business-finance-homework-help\/"},"modified":"2022-12-10T12:30:26","modified_gmt":"2022-12-10T12:30:26","slug":"future-values-business-finance-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/future-values-business-finance-homework-help\/","title":{"rendered":"Future values | Business &#038; Finance homework help"},"content":{"rendered":"<div id=\"\">\n<p><strong><span>\u00a0<\/span><\/strong><\/p>\n<p><span>1. One-year Treasury bills currently earn 2.90 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 3.10 percent and that two years from now, 1-year Treasury bill rates will increase to 3.60 percent. The liquidity premium on 2-year securities is 0.05 percent and on 3-year securities is 0.15 percent. If the liquidity premium theory is correct, what should the current rate be on 3-year Treasury securities? (Do not round intermediate calculations. Round your answer to 2 decimal places.)<\/span><\/p>\n<p><span>\u00a0<\/span><\/p>\n<p><span>2.\u00a0<\/span><span>Compute the future value in year 8 of a $2,600 deposit in year 1 and another $2,100 deposit at the end of year 3 using a 10 percent interest rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.)<\/span><\/p>\n<p><span>\u00a0<\/span><\/p>\n<p><span>3.\u00a0<\/span><span>What&#8217;s the present value of a $950 annuity payment over six years if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)<\/span><\/p>\n<p><span>\u00a0<\/span><\/p>\n<p>\u00a0<\/p>\n<p><span>4. Compute the future value in year 8 of a $2,600 deposit in year 1 and another $2,100 deposit at the end of year 3 using a 10 percent interest rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.)<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 1. One-year Treasury bills currently earn 2.90 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 3.10 percent and that two years from now, 1-year Treasury bill rates will increase to 3.60 percent. The liquidity premium on 2-year securities is 0.05 percent and on 3-year securities is 0.15 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-109483","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/109483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=109483"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/109483\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=109483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=109483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=109483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}