True or False: If you open an individual retirement account (IRA) at a commercia
ID: 2740696 • Letter: T
Question
True or False: If you open an individual retirement account (IRA) at a commercial bank and deposit $1,000 in the account per year, how much will be in the account after 20 years if the funds earn 7% annually? $1,000(40.995) = $40,995
True or False: If a person owes $50,000 at 10 percent and annually pays $10,000, the loan will be retired in 5 years.
True or False: You bought an asset for $10,000 and sold it for $20,000 after 10 years. What was the annual rate of return on this investment? The rate of return or growth rate (g) is approximately 7%.
Explanation / Answer
use fv formulael in excel
=fv(rate,nper,pmt,pv,type)
=fv(7%,20,1000,,0)
=$40,995 and it is correct
2)use fv formuale in excel
=FV(10%,5,10000,,0)=$61,051 and it is higher than 50,000 so it can be repaid.
3)use rate formulae in excel to fidn this
rate(nper,pmt,pv,fv,type,guess)
=RATE(10,,10000,-20000,0,1)
=7%
It is true
=
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.