If the interest rate is 10 percent, then the future value in 2
years of $100 today would be?
a. $80 $121.00
b. $83
c. $120
d. $121
Suppose you make 5 annual deposits of $1,000 in a savings account paying 6%
compounded annually. The deposits are made at the beginning of each year. What
amount would be in your account in Year 5?
$5,975.32
Jack's financial advisor has encouraged him to start putting money into a retirement account. Suppose that Jack deposits $2,75
a. How much will he end up with? $201,041.33
b. How much would he end up with if he instead made his deposits at the start of each ye $217,124.64
. Suppose that Jack deposits $2,750 at the end of each year into an account earning 8% for 25 years.
Find the future value of quarterly payments of $750 for 5 years, assuming an 8% interest rate.
$18,587.49
Alexis will be retiring in 5 years, and wants to have a balance of
$600,000 in an investment account at that time. Right now, she has $375,000 in this
account. She expects her account to earn 8.4%. How much does she need to deposit
each month to reach this goal?
($405.38)
For 15 years I deposited $2,500 each year into an investment
account that earned 7½%. Then, for the next 5 years, I kept making payments, but
only $1,000 each. How much was my account worth at the end of 20 years? How much
total interest did I earn?
7.50%
$70,193.11
$107,015.30 PMT interest total
1 0 2500 2500 187.5 2687.5
$64,515.30 2 2687.5 2500 5187.5 389.0625 5576.563
3 5576.563 2500 8076.563 605.7422 8682.305
4 8682.305 2500 11182.3 838.6729 12020.98
5 12020.98 2500 14520.98 1089.073 15610.05
6 15610.05 2500 18110.05 1358.254 19468.3
7 19468.3 2500 21968.3 1647.623 23615.93
8 23615.93 2500 26115.93 1958.695 28074.62
9 28074.62 2500 30574.62 2293.097 32867.72
10 32867.72 2500 35367.72 2652.579 38020.3
11 38020.3 2500 40520.3 3039.022 43559.32
12 43559.32 2500 46059.32 3454.449 49513.77
13 49513.77 2500 52013.77 3901.033 55914.8
14 55914.8 2500 58414.8 4381.11 62795.91
15 62795.91 2500 65295.91 4897.193 70193.11
32693.11
PMT Interest Total
1 70193.11 1000 71193.11 5339.483 76532.59
2 76532.59 1000 77532.59 5814.944 83347.53
3 83347.53 1000 84347.53 6326.065 90673.6
4 90673.6 1000 91673.6 6875.52 98549.12
5 98549.12 1000 99549.12 7466.184 107015.3
31822.2
64515.3
Kevin deposited $1,000 each year into a savings account that earned
a 5% effective rate for 10 years. In the third year, though, he was able to deposit
$5,000 instead of his usual $1,000. How much did he have at the end of the 10 years?
$2,152.50
$7,510.13
$19,116.61
Brandon has $1,457.06 in his savings account, which pays 3.6%
interest compounded monthly. Each month he deposits $75 into this account. How
much will he have in his savings account after 2 years?
$6,290.36
this account. How
Dario wants to have $1,000,000 in his retirement account when he
reaches age 70, 45 years from now. Dario thinks that his account can earn 9.6%, and
he’d like to reach his goal by making monthly deposits for just the next 10 years. How
much should each deposit be?
($35,202.74)
($174.43)
unt can earn 9.6%, and
t the next 10 years. How
Wanda is 25 years old. She has decided to put $2,500 each year into
a retirement account starting this year, but she plans to make these deposits for only
10 years. Her twin brother Wayne is also 25 years old. More of a procrastinator, he
plans to wait 10 years before putting anything into his retirement account. But once he
starts, he plans to keep up deposits of $2,500 per year until he is 65.
Assuming that Wayne and Wanda both earn 8.4% interest, how much will each have at
age 65?
$40,012.22 $330,455.56
$449,853.48
posits for only
astinator, he
unt. But once he
will each have at
