Question

 

At what annual interest rate must $345,000 be invested so that it will grow to be $1,520,000 in 25 years?

How many years will it take for $56,000 to grow to be $500,000 if it is invested in an account with an annual interest rate of 11%?

What will $15,000 grow to be in 35 years if it is invested today in an account with an annual interest rate of 12%

If you wish to accumulate $1,250,000 in 28 years, how much must you deposit today in an account that pays an annual interest rate of 4%?

At what annual interest rate must $92,000 be invested so that it will grow to be $742,000 in 18 years?

How many years will it take for $89,000 to grow to be $523,000 if it is invested in an account with an annual interest rate of 15%?

Answer 1

1)R= (Future value/present value)^1/n -1

     =[1,520,000/345,000)^1/25    -1

     =[4.40580]^.04 -1

    = 1.0611-1

   = .0611 or6.11%

2)number of years = IN[Future value/present value]/IN(1+r)

            = IN[500000/56000]/IN[1+.11)

            = IN 8.92857 / IN 1.11

             = 2.18926 / .10436

              = 20.98 Years

3)Future value =Amount *FVF12%,35.  

            = 15000 * 52.79962

             = 791994.29

4)Amount to deposit today =Future value *PVF 4%,28

                = 1250000* .33348

               = $ 416850

5)R= [742000/92000]^1/18 - 1

      =[8.06522]^ .055556   - 1

         = 1.1230-1

    = .1230 or 12.30%

6)Number of years = IN[523000/89000]/IN[1+.15]

          = IN 5.87640 / IN 1.15

         = 1.77094/.13976

         = 12.67 YEars