Question

Scenario 1. Suppose you invest a sum of $ 5000 in an​ interest-bearing account at the rate of 10 ​% per year. What will the investment be worth six years from​ now? ​(Round your answer to the nearest whole​ dollar.) In six years the investment will be worth _______.

Scenario 2. How much would you need to invest now to be able to withdraw $ 11,000 at the end of every year for the next 20​ years? Assume an 8 % interest rate. ​(Round your answer to the nearest whole​ dollar.) The current investment amount required is $ _______ .

Scenario 3. Assume that you want to have $ 135,000 saved seven years from now. If you can invest your funds at a 6 ​% interest​ rate, how much do you currently need to​ invest? ​(Round your answer to the nearest whole​ dollar.) The current investment amount required is $ _______ .

Scenario 4. Your aunt Cathy plans to give you $ 4,500 at the end of every year for the next ten years. If you invest each of her yearly gifts at a 14 % interest​ rate, how much will they be worth at the end of the​ ten-year period? ​(Round your answer to the nearest whole​ dollar.) In ten years the investment will be worth $ _______ .

Scenario 5. Suppose you want to buy a small cabin in the mountains four years from now. You estimate that the property will cost $ 53,000 at that time. How much money do you need to invest each year in an​ interest-bearing account at the rate of 6 ​% per year to accumulate the purchase​ price? ​(Round your answer to the nearest whole​ dollar.) The investment required each year is $ ________ .

Answer 1

Your answer is as follows: