Question

How much will you have in thirty-one years if you invest $220 today, and can earn...

How much will you have in thirty-one years if you invest $220 today, and can earn 4.3%?

What is an investment fund worth today that will pay you $32,000 in eleven years, if you can earn 6%?

Your parents will put $13,000 into a Certificate of Deposit (CD) today to provide you with $30,000 for your college education. If the interest rate is 5%, how many years must you wait before you can go to college?

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Homework Answers

Answer #1

Future formula:

Where,
A = Future value
P = Present value
i = rate of return in decimal form
n = number of years

#1: We need to find the future value of $220:

#2. Here, we need to find P:

#3. Number of years (n):

Now taking log10 on both sides, we get:

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