The relationship between the present value of a future sum and the future value of a present sum can be expressed in terms of their respective interest factors. if the present value of $200,000 due at the end of 8 years, at 10%, is $93,300, what is the approximate future value of $200,000 invested for the same length of time and at the same rate?
a. $93,300
b. $200,000
c. $293,300
d. $428,724

Time value an iowa state savings bond can be converted to $750 at maturity 5 years from purchase. if the state bonds are to be competitive with u.s. savings bonds, which pay 5% annual interest (compounded annually), at what price must the state sell its bonds? assume no cash payments on savings bonds prior to redemption. ignore taxes.

Amanda rice has just arranged to purchase a $640,000 vacation home in the bahamas with a 20 percent down payment. the mortgage has a 7 percent apr compounded monthly and calls for equal monthly payments over the next 30 years. her first payment will be due one month from now. however, the mortgage has an eight-year balloon payment, meaning that the balance of the loan must be paid off at the end of year 8. there were no other transaction costs or finance charges. how much will amanda’s balloon payment be in eight years

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance