Question

Please show your work. If you don't show your work, you will not get credit. You can put the number next to the function in your submission. For example, FV = 150,000, PV = 250,000, i = 10%, and n = 5. Questions, let me know. If you do not show your work, no credit.

If you wish to accumulate $325,000 in 15 years, how much must you deposit today in an account that pays an annual interest rate of 8%?

What will $200,000 grow to be in 15 years if it is invested today in an account with an annual interest rate of 8%?

How many years will it take for $192,000 to grow to be $500,000 if it is invested in an account with an annual interest rate of 8%?

At what annual interest rate must $272,000 be invested so that it will grow to be $477,000 in 5 years?

At what annual interest rate must $345,000 be invested so that it will grow to be $1,520,000 in 25 years?

How many years will it take for $56,000 to grow to be $500,000 if it is invested in an account with an annual interest rate of 11%?

What will $15,000 grow to be in 35 years if it is invested today in an account with an annual interest rate of 12%

If you wish to accumulate $1,250,000 in 28 years, how much must you deposit today in an account that pays an annual interest rate of 4%?

At what annual interest rate must $92,000 be invested so that it will grow to be $742,000 in 18 years?

How many years will it take for $89,000 to grow to be $523,000 if it is invested in an account with an annual interest rate of 15%?

Answer 1

Answer to Question 1.

Future Value = Present Value * (1 + i)^n
Future Value (FV)= $325,000
Present Value (PV) = ??
i = 8%
n = 15

$325,000 = PV * (1 + 0.08)^15
$325,000 = PV * 3.172169
PV = $102,453.60

Answer to Question 2.

Future Value = Present Value * (1 + i)^n
Future Value (FV)= ??
Present Value (PV) = $200,000
i = 8%
n = 15

FV = $200,000 * (1 + 0.08)^15
FV = $200,000 * 3.172169
FV = $634,433.80

Answer to Question 3.

Future Value = Present Value * (1 + i)^n
Future Value (FV)= $500,000
Present Value (PV) = $192,000
i = 8%
n = ??

$500,000 = $192,000 * (1 + 0.08)^n
$500,000 = $192,000 * 1.08^n
2.604167 = 1.08^n
n = 12.44 years

Answer to Question 4.

Future Value = Present Value * (1 + i)^n
Future Value (FV)= $477,000
Present Value (PV) = $272,000
i = ??
n = 5 years

$477,000 = $272,000 * (1 + i) ^5
$477,000 = $272,000 * (1 + i) ^5
1.753676 = (1 + i)^5
i = 0.1189 = 11.89%