Question

Q1) Suppose you invest $66,624 today in an account that earns 13.00% interest annually. How much money will be in your account 11 years from today?
Q2) What is the value today, of single payment of $51,252 made 13 years from today, if the value is discounted at a rate of 04.00%?
Q3) How many years would it take an investment of $333 to grow to $10,789 at an annual rate of return of 11.00%?
Q4) How much money would you need to deposit today at 23.00% annual interest compounded monthly to have $26,802 in the account after 13 years?
Q5) If you deposit $729 into an account paying 15.00% annual interest compounded quarterly, how many years until there is $37,847 in the account?
Q6) If you deposit $21,114 at 06.00% annual interest compounded quarterly, how much money will be in the account after 15 years?
Q7) If you deposit $968 into an account paying 10.00% annual interest compounded monthly, how many years until there is $24,144 in the account?
Q8) What is the value today of receiving a single payment of $71,813 in 25 years if your required rate of return on this investment is 04.00% compounded semi-annually?
Q9) If you deposit $443 at 20.00%annual interest compounded daily, how much money will be in the account after 19 years? (Assume that there are 364 days in a year)
Q10) Suppose you deposit $360 today, $342 in one year, and $254 in two years in an account that pays an annual rate of interest of 02.00%. How much money will be in the account after three years?
When inputting an answer, round your answer to the nearest 2 decimal places.If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed. For the final answer, Round to 2 decimal places.

Answer 1

First 2 questions are being answered here:

1. Here we will use the following formula:

FV = PV * (1 + r%)n

where, FV = Future value, PV = Present value = $66624, r = rate of interest = 13%, n= time period = 11

now, putting theses values in the above equation, we get,

FV = $66624 * (1 + 13%)11

FV = $66624 * (1 + 0.13)11

FV = $66624 * (1.13)11

FV = $66624 * 3.83586115061

FV = $255560.41

So, after 11 years, we will have $255560.41.

2. Here we will use the following formula:

PV = FV / (1 + r%)n

where, FV = Future value = $51252, PV = Present value, r = rate of interest = 4%, n= time period =13

now, putting these values in the above equation, we get,

PV = $51252 / (1 + 4%)13

PV = $51252 / (1 + 0.04)13

PV = $51252 / (1.04)13

PV = $51252 / 1.66507350731

PV = $30780.62

So, present value is $30780.62.