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The document outlines five financial calculations involving future value and present value based on different interest rates and time periods. It provides specific values for deposits needed today to reach future goals, growth of investments over time, and the required interest rate for a certain investment outcome. The calculations include various scenarios with different amounts, interest rates, and compounding periods.

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2 views3 pages

Tutorial

The document outlines five financial calculations involving future value and present value based on different interest rates and time periods. It provides specific values for deposits needed today to reach future goals, growth of investments over time, and the required interest rate for a certain investment outcome. The calculations include various scenarios with different amounts, interest rates, and compounding periods.

Uploaded by

blaclac95
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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1.

If you wish to accumulate $140,000 in 13 years, how much must you deposit today in an account that
pays an annual interest rate of 14%?

2. What will $247,000 grow to be in 9 years if it is invested today in an account with an annual interest rate
of 11%?

3. How many years will it take for $136,000 to grow to be $468,000 if it is invested in an account with an
annual interest rate of 8%?

4. At what annual interest rate must $137,000 be invested so that it will grow to be $475,000 in 14 years?

5. If you wish to accumulate $197,000 in 5 years, how much must you deposit today in an account that pays
a quoted annual interest rate of 13% with semi-annual compounding of interest?
nterest rate

unt that pays


1. n = 13
i = 14
FV = 140000
solve for PV (answer = $25,489.71)

2. n = 9
i = 11
PV = -247000
solve for FV (answer = $631,835.12)

3. i = 8
PV = -136000
FV = 468000
solve for n (answer = 16.06 years)

4. n=14
PV = -137000
FV = 475000
solve for i (answer = 9.29%)

5.n = 10 (5 years times 2 comp. periods per year)


i = 6.5 (13% annually divided by 2 comp. period per year)
FV = 197000
solve for PV (answer = $104,947.03)

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