LP6.2 Financial Assignment: Value of Investment Problems
This assignment will assess the competency 5. Examine the impact of management decisions on cost of capital for healthcare organizations.
Directions: In a word document, work out the financial problems below. Please use a cover page including your name, date, instructor, and course. To earn full credit you must show all your calculations.
DO NOT summited the work on excel it has to be done on MS Word.
1. If a nurse deposits $1,000 today in a bank account and the interest is compounded annually at 12%, what will be the value of this investment: (Chapter 18)
a) five years from now? $1,000×FVF(12%,5) Use Table 18-1 on page 405
b) ten years from now? $1,000×FVF(12%,10)
c) fifteen years from now? $1,000×FVF(12%,15)
d) twenty years from now? $1,000×FVF(12%,20)
2. If the business manager deposits $200 in a savings account at the end of each year for twenty years, what will be the value of her investment:
a) at a compounded rate of 10%? $200×FVFA(10%,20) Using Table 18-3 on page 408
b) at a compounded rate of 14%? $200×FVFA(14%,20)