Assume you deposit $10,000 today in an account that pays 6 percent interest. How much will you have in five years?

Calculating PV: Suppose you have just celebrated your 19th birthday. A rich uncle has set up a trust fund for you that will pay you $150,000 when you turn 30. If the relevant discount rate is 9 percent, how much is this fund worth today?

Calculating Rates of Return You've been offered an investment that will double your money in 10 years. What rate of return are you being offered?

Calculating the Number of Periods You've been offered an investment that will pay you 9 percent per year. If you invest $15,000, how long until you have $30,000? How long until you have $45,000?

Your  association  is  thinking  about  running  a  venture which  will  involve  a  speculation  of  $1,000,000.  The  item  from  the  venture  is  determined  to  make  incomes  of  $250,000  in  the  primary year after the end of the venture and of $420,000 in each of the two after years. With a discount rate of 10% would this be an interesting investment option?

Answer rating: 100% (QA)

1 Calculating the future value FV of 10000 after 5 years with a 6 interest rate FV PV 1 rn FV 10000 ... View the full answer