thanks in advance! I've already solved #1 and #2 Problem H-3 302 PV/FV...
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thanks in advance! I've already solved #1 and #2
Problem H-3 302 PV/FV Amount Problems 1. How much must be invested today to have $1,000 in two years if the interest rate is 5%? years 2. At an effective interest rate of 8 %, an amount invested will double itself in 3. Your investment balance is $10,000. Three years ago you invested $7,938 and have not touched the investment since. What compound annual rate of interest have you earned? 4. If you invest the $10,000 you receive at graduation in a mutual fund which averages a 12% annual return, how much will have forty years later? 5. You purchased stock nine years ago for $30,000 and sold it today for $83,190. What was the annual rate of return on your investment? Assume no dividends were paid. 6. The Spartan National Bank has agreed to lend you $30,000 today. In three years you must pay them $42,147. What is the annual rate of interest? 7. Your parents gave you a $50,000 savings bond when you were born. All interest accumulates and is part of the $50,000 that is paid to you when you receive age 20. What amount did they pay for this bond assuming a 10% annual return? 8. What amount received at the end of 20 years is equivalent to $100 today, given an interest rate of 14%
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