a. How much will you have in 5 years if you invest $25,000 for a 5-year period
Question:
a. How much will you have in 5 years if you invest $25,000 for a 5-year period at an annual interest rate of:
a. 25%?
b. 12%?
c. 7%?
d. 0%?
b. You have been told you will receive $75,000 at some time in the future. In the meantime you can earn interest at an annual rate of 6%. How much is the $75,000 worth to you today if the time you must wait for its receipt is:
a. 1 year?
b. 2 years?
c. 5 years?
d. 10 years?
c. You have $10,000 today. How long will it take for you to double your money if you can earn interest at an annual rate of:
a. 5%?
b. 8%?
c. 15%?
d. 100%?
d. What annual interest rate, earned over 8 years, will make an initial $17,500 grow to be:
a. $20,000?
b. $25,000?
c. $35,000?
d. $50,000?
e. If you can earn at an annual interest rate of 8% per year, how much will you have accumulated if you save $3,000 at the end of each of the next:
a. 5 years?
b. 10 years?
c. 15 years?
d. 20 years?
f. How much must you pay at the end of each year to repay a $50,000, 14% annual interest rate loan if you must make:
a. 10 payments?
b. 15 payments?
c. 20 payments?
d. 30 payments?
g. You wish to create a bank account from which you can withdraw $10,000 per year at the end of each of the next 10 years. How much must you deposit today to provide these benefits if you can earn at a rate of:
a. 5%?
b. 12%?
c. 16%?
d. 20%?
h. You have saved $250,000 and wish to retire today. For how many years can you draw $30,000, at the end of each year, if you can continue to earn interest at a rate of:
a. 5%?
b. 8%?
c. 10%?
d. 11%?
i. An insurance fund advertises that if you invest $50,000 today, you will receive a fixed amount at the end of each of the next 20 years. What interest rate are they giving you if the annual amount is:
a. $ 3,500?
b. $ 5,000?
c. $ 7,500?
d. $10,000?
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe