What is the value three years from now of a bank deposit of $1500 if interest is compounded annually at a rate of 6.75%.
2.) What if the interest rate drops to 2%.
3.) Suppose your grandmother invested $1000 for you when you were born. If the investment earns 6% per year what will it be worth on your 21st birthday?
4.) How much money would you have to put aside today in order to buy a new auto for $45,000 five years from now if interest rates are currently 7%.
5.) Suppose Third First Bank is offering a CD that will pay you $10,000 in 3 years if you deposit $7,938.32 today. What is the expected rate of return?

Answer rating: 100% (QA)

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