1. Refer to the following table. For each case (A through D), calculate the ANNUAL...
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1. Refer to the following table. For each case (A through D), calculate the ANNUAL interest necessary for the present amount (PV) to compound to the future amount (FV). Be SURE to state your answer in ANNUAL terms.
Case present amount future amount years compounding
A $18,000 $30,000 5 annual
B $600 $3,000 20 semiannual
C $3,500 $10,000 10 quarterly
D $1,000 $15,000 40 monthly
2. Refer to the following table. For each case (A through D), calculate the NUMBER OF YEARS necessary for the present amount (PV) to compound to the future amount (FV) with the given interest rate and compounding. Be SURE to state your answer as YEARS.
Case present amount future amount rate per year compounding
A $15,000 $30,000 5 annual
B $6,000 $13,000 12 semiannual
C $3,500 $10,000 10 quarterly
D $1,000 $15,000 12 monthly
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