DUE AT THE BEGINNING OF CLASs THIS HOMEWORK SET CONSISTS OF 10 PROBLEMS ON 2 PAG

Question

DUE AT THE BEGINNING OF CLASs THIS HOMEWORK SET CONSISTS OF 10 PROBLEMS ON 2 PAGES SHOW YOUR WORK AND SOLUTIONS FOR FULL CREDIT Homework Set 2: Introduction to TVM Name Problem 1 what is the future value of $10,000 on deposit for five years at 5% simple interest? Problem 2 Assume the total expense for your current year in college equals $35,000. Approximately how much would your parents have needed to invest 17 years ago in an account paying 7% compounded annually to cover this amount? Problem 3 How long must one wait (to the nearest year) for an initial investment of $2,000 to triple in value if the investment cams 9% compounded annually? Problem 4 Write the present value of a perpetuity formula Problem 5 A credit card account that charges interest at the rate of 3.00% per month would have an annually compounded rate of and an APR of

Explanation / Answer

Deposit = $10,000
Simple Interest Rate = 5%
Period = 5 years

Interest = Deposit * Simple Interest Rate * Period
Interest = $10,000 * 5% * 5
Interest = $2,500

Future Value = Deposit + Interest
Future Value = $10,000 + $2,500
Future Value = $12,500

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.