1. You put $300 in the bank for 5 years at 8%. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year.

2. If you invest $18,000 today, how much will you have in:
4. 6 years at 8%
6. 12 years at 12%
8. 15 years at 10%
10. 20 years at 18%

1. You have been depositing money into an account yearly based on the following amounts, rates, and times. What is the value of that investment account at the end of that period?

Amount of Investment	Rate	Time	Value at the End of the Period
$8,000	15%	12 years	?
$15,000	12%	10 years	?
$17,500	10%	6 years	?
$35,000	6%	3 years	?

1. How much would you invest today in order to receive $30,000 in each of the following:
   2. 11 years at 7%
   4. 10 years at 11%
   6. 16 years at 14%
   8. 20 years at 17%

1. Your friend has a trust fund that will pay her the following amounts at the given interest rate for the given number of years. Calculate the current (present) value of your friend's trust fund payments.

Amount of Yearly Receipt	Rate	Time	Current Value
$7,200	10%	6 years	?
$12,200	13%	8 years	?
$15,000	15%	10 years	?
$24,500	16%	20 years	?

1. Julio Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 6 years and can be sold for $30,000 at the end of the period, what is the present value of the machine investment at a 8% interest rate with savings realized at year end?

1. How much be invested now to receive $45,000 for 10 years if the first $45,000 is received one year from now and the rate is 8%?

Answer rating: 100% (QA)

For the first question since interest is added annually we can use the formula for compound interest to find out how much money there will be in the bank at the end of each year A P1 rt where A is the ... View the full answer