Question

# Q1) Suppose you invest \$66,624 today in an account that earns 13.00% interest annually. How much...

 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.

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.