Question

Q1) Suppose you invest $104,105 today in an account that earns 08.00% interest annually. How much money will be in your account 10 years from today?

Q2) What is the value today, of single payment of $28,298 made 17 years from today, if the value is discounted at a rate of 25.00%?

Q3) How many years would it take an investment of $763 to grow to $11,610 at an annual rate of return of 18.00%? Q4) How much money would you need to deposit today at 11.00% annual interest compounded monthly to have $25,815 in the account after 4 years?

Q5) If you deposit $438 into an account paying 20.00% annual interest compounded quarterly, how many years until there is $89,767 in the account?

Q6) If you deposit $97,611 at 09.00% annual interest compounded quarterly, how much money will be in the account after 14 years?

Q7) If you deposit $1,942 into an account paying 14.00% annual interest compounded monthly, how many years until there is $35,419 in the account?

Q8) What is the value today of receiving a single payment of $25,732 in 10 years if your required rate of return on this investment is 04.00% compounded semi-annually?

Q9) If you deposit $282 at 17.00%annual interest compounded daily, how much money will be in the account after 13 years? (Assume that there are 364 days in a year)

Q10) Suppose you deposit $399 today, $661 in one year, and $727 in two years in an account that pays an annual rate of interest of 18.00%. How much money will be in the account after three years?

Answer 1

1-	Fv = PV*(1+r)^n	104105*(1.08)^10	224754.8868
2-	PV = fv/(1+r)^n	28298/(1.25)^17	637.2143113
3-	time Period	Using nper function in MS excel =nper(rate,pmt,pv,fv,type)	NPER(18%,0,-613,11610,0)	17.77
4-	Present value	Using present value function in MS exel =pv(rate,nper,pmt,fv,type)	PV(11%/12,48,0,25815,0)	($16,659.16)
5-	time Period in quarter	Using nper function in MS excel =nper(rate,pmt,pv,fv,type)	NPER(18%,0,-613,11610,0)	109.09	27.27	Years
6-	FV = pv*(1+r)^n	Using Future value function in MS exel =Fv(rate,nper,pmt,pv,type)	FV(9%/4,14*4,0,-97611,0)	$339,347.38
7-	time Period in months	Using nper function in MS excel =nper(rate,pmt,pv,fv,type)	NPER(14%/12,0,-1942,35419,0)	250.32	20.86	Years
8-	PV	Using present value function in MS exel =pv(rate,nper,pmt,fv,type)	PV(4%/2,20,0,25732,0)	($17,316.90)
9-	FV = pv*(1+r)^n	Using Future value function in MS exel =Fv(rate,nper,pmt,pv,type)	FV(17%/364,364*13,0,-282,0)	$2,569.31
10-
	Year	amount deposited	future value = pv*(1+r)^n-0, pv*(1+r)^n-1…….. pv*(1+r)^n-n	future value
	1	339	339*(1.18)^3	472.0236
168	2	661	661*(1.18)^2	920.3764
	3	727	727*(1.18)^1	857.86
	Future value at the end of year 3			2250.26