Question

1. How much would $2,000 become in 10 years at 5% interest? 2. How much would...

1. How much would $2,000 become in 10 years at 5% interest?

2. How much would $2,000 deposits each year for 10 years at 5% become in 10 years?

3. How much money would you have to have on deposit today at a 5% annual interest rate to become $50,000 in 40 years?

4. How much money would you have to have on deposit to provide $30,000 each year for 25 years (considering 5% interest)?

Homework Answers

Answer #1
1. Future Value =fv(rate,nper,pmt,pv)
= $ 3,257.79
Where,
rate = 5%
nper = 10
pmt = 0
pv = $        -2,000
2. Future Value =fv(rate,nper,pmt,pv)
= $ 25,155.79
Where,
rate = 5%
nper = 10
pmt = $        -2,000
pv = 0
3. Present Value =-pv(rate,nper,pmt,fv)
= $7,102.28
Where,
rate = 5%
nper = 40
pmt = 0
fv = $       50,000
4. Present Value =-pv(rate,nper,pmt,fv)
= $ 422,818.34
Where,
rate = 5%
nper = 25
pmt = $ 30,000.00
fv = 0
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