Question

A. Suppose you invest $83736 today in an account that earns 13% interest annually. How much money will be in your account 7 years from today?

B. What is the value today of single payment of $36665, 18 years from today if the value is discounted at a rate of 19%?

C. How many years would it take an investment of $172 to grow to $18096 at an annual rate of return of 15%?

D. How much money would you need to deposit today at 21% annual interest compounded monthly to have $12471 in the account after 9 years?

E. If you deposit $336 into an account paying 12.1% annual interest compounded quarterly, how long until there is $92127 in the account?

Answer #1

A.

How much money will be in your account 7 years from today

=83736*(1+13%)^7

=196997.77.

B.

What is the value today of single payment

=36665/(1+19%)^18

=1601.06

C.

using excel function=NPER(rate,pmt,pv,fv)

How many years would it take an investment=NPER(15%,0,-172,18096)=33.31 years

D.

How much money would you need to deposit today

=12471/(1+(21%/12))^(9*12)

=1915.07

E.

using excel function=NPER(rate,pmt,pv,fv)

How many years would it take an investment=(NPER(12.1%/4,0,-336,92127))/4

=47.09 years

the above is answer..

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