finance data bank

Question # 00003781 Posted By: spqr Updated on: 11/20/2013 01:21 AM Due on: 11/30/2013
Subject Finance Topic Finance Tutorials:
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6-1

FUTURE VALUE

If you deposit $10,000 in a bank account that pays 10 percent interest annually,

HOW MUCH MONEY WILL BE IN YOUR ACCOUNT AFTER 5 YEARS?






6-2

PRESENT VALUE

Assume that you can earn 7 percent if you were to invest in other securities of equal risk.

WHAT IS THE PRESENT VALUE OF A SECURITY THAT PROMISES TO PAY YOU $5,000 IN 20 YEARS?







6-3

TIME FOR A LUMP SUM TO DOUBLE















6-5

EFFECTIVE RATE OF INTEREST

Your parents are planning to retire in 18 years. They currently have $250,000, and they would like to have $1,000,000 when they retire.

WHAT ANNUAL RATE OF INTEREST WOULD THEY HAVE TO EARN ON THEIR $250,000 IN ORDER TO REACH THEIR GOAL, ASSUMING THEY SAVE NO MORE MONEY?

If you deposit money today into an account that pays 6.5 percent interest,

HOW LONG WILL IT TAKE FOR YOU TO DOUBLE YOUR MONEY?




6-4

REACHING A FINANCIAL GOAL











John Roberts has $42,180.53 in a brokerage account, and he plans to contribute an additional $5,000 to the account at the end of every year. The brokerage account has an expected annual return of 12 percent.

IF JOHN’S GOAL IS TO ACCUMULATE $250,000 IN THE ACCOUNT, HOW MANY YEARS WILL IT TAKE FOR JOHN TO REACH HIS GOAL?









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Tutorials for this Question
  1. Tutorial # 00003590 Posted By: spqr Posted on: 11/20/2013 01:46 AM
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