1. Juan wants to open an account into which he hopes to deposit the following at the beginning of each year: 1: $ 11,000; 3: $ 11,500; 6: $ 13,000. If the rate of return you get in a bank is 16%, computed annually, how much will you have at the end of year 7 in your investment? (Hint: draw the timeline so as not to fail this problem)

2. If Bianca, who is 24 years old, deposits $ 28,000 in a savings account that pays 16% of Annual interest, compounded quarterly, how much will you have in the account at the end of your birthday number 30?

3. What annual interest rate, compounded semiannually for 6 years, will be needed for a $ 5,000 investment, grow to $ 12,000?

4. Isabel is going to invest a certain amount at 10% per year, compounded quarterly. Of this investment you could get $ 8,000, ten years from now. If he can earn 10% per annum, compounded semiannually on your investment, how much is the most that it should pay now for this investment?

5. Let's assume that you want to buy a house in 7 years from now and you estimate that the prompt payment and Initial expenses needed will be $ 65,000 at that time. How much do you need to deposit to beginning of each year in the next 7 years to accumulate the $ 65,000 if you can earn 5% annually compounded semi-annually on your deposits?

***ATTACHED FORMULAS AND MULTIPLIERS TABLES***

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*** USE THE FORMULA THAT BEST COMPLETES THE EXERCISE. PLEASE SHOW WORK STEP BY STEP. *** Formulas FVIF, FVIF-A & PVIF-A Located in Table #... TABLE 1 FV=PV(FVIF) PV-FV(PVIF) FV(A)O=ANNUITY(FVIF-A) FV SIMPLE PV SIMPLE FV ORDINARY ANNUITY FV ANNUITY DUE PV ORDINARY ANNUITY PV ANNUITY DUE MIXED FV MIXED PV INTEREST RATE # OF PERIODS FV(A)D=ANNUITY(FVIF-A)(1+K/M^M) PV(A)O=ANNUITY(PVIF-A) PV(A)D=ANNUITY(PVIF-A)(1+K/M^M) > SIMPLE FV > SIMPLE PV MULTIPLIER K/M N*M TABLE 2 TABLE 3 TABLE 3 TABLE 4 TABLE 4 TABLE 1 TABLE 2 WHERE N IS THE # OF YEARS & M IS HOW MANY TIMES THE INTEREST RATES ARE COMPUTED IN THE YEAR *** USE THE FORMULA THAT BEST COMPLETES THE EXERCISE. PLEASE SHOW WORK STEP BY STEP. *** Formulas FVIF, FVIF-A & PVIF-A Located in Table #... TABLE 1 FV=PV(FVIF) PV-FV(PVIF) FV(A)O=ANNUITY(FVIF-A) FV SIMPLE PV SIMPLE FV ORDINARY ANNUITY FV ANNUITY DUE PV ORDINARY ANNUITY PV ANNUITY DUE MIXED FV MIXED PV INTEREST RATE # OF PERIODS FV(A)D=ANNUITY(FVIF-A)(1+K/M^M) PV(A)O=ANNUITY(PVIF-A) PV(A)D=ANNUITY(PVIF-A)(1+K/M^M) > SIMPLE FV > SIMPLE PV MULTIPLIER K/M N*M TABLE 2 TABLE 3 TABLE 3 TABLE 4 TABLE 4 TABLE 1 TABLE 2 WHERE N IS THE # OF YEARS & M IS HOW MANY TIMES THE INTEREST RATES ARE COMPUTED IN THE YEAR

Answer rating: 100% (QA)

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