Complete the following problems using either the financial functions in Excel or the Present Value and Future
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Question:
(1) If you wish to have $60,000 in 8 years, how much do you need to deposit in the bank today if the account pays an interest rate of 9%?
(2) What will $110,000 grow to be in 9 years if it is invested today at 11%?
(3) You would like to have $200,000 in a college fund in 15 years. How much do you need today if you expect to earn 12% while you are investing to pay for your child's college?
(4) You have been offered $3,000 in 4 years for providing $2,000 today into a business venture with a friend. If interest rates are 10%, is this a good investment for you?
(5) What will $82,000 grow to be in 11 years if it is invested today at 8% and the interest rate is compounded monthly?
(6) How many years will it take for $136,000 to grow to $468,000 if it is invested in an account with an annual interest rate of 8%
(7) At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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