Question

The following situations involve the application of the time value of money concept. Use the full factor when calculating your results.

Use the appropriate present or future value table:

FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1

1. Janelle Carter deposited $9,750 in the bank on January 1, 2000, at an interest rate of 10% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar.
$fill in the blank 1

2. Mike Smith deposited $20,140 in the bank on January 1, 2007. On January 2, 2017, this deposit has accumulated to $32,806. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit? Round to the nearest whole percent.
fill in the blank 2 %

3. Lee Spony made a deposit in the bank on January 1, 2010. The bank pays interest at the rate of 9% compounded annually. On January 1, 2017, the deposit has accumulated to $16,230. How much money did Lee originally deposit on January1, 2010? Round to the nearest whole dollar.
$fill in the blank 3

4. Nancy Holmes deposited $5,380 in the bank on January 1 a few years ago. The bank pays an interest rate of 8% compounded annually, and the deposit is now worth $11,615. How many years has the deposit been invested? Round to the nearest whole year.
fill in the blank 4 years

Answer 1

I hope this shall suffice. Use excel / calculators to multiply & get desired results as shown above.