Question: How much will a $100 deposit made today be worth in 20 years if interest is compounded annually at a rate of 7%? How much

  1. How much will a $100 deposit made today be worth in 20 years if interest is compounded annually at a rate of 7%?
  2. How much will a $100 deposit made today be worth in 30 years if interest is compounded annually at a rate of 10%?
  3. How much will a $100 deposit made today be worth in 30 years if the interest is compounded quarterly at a rate of 10%? Which would you rather have annual or quarterly compounding?
  4. You have purchased some land for $75,000. How much will you have to sell the property in 20 years to earn a 7% annual return on both your initial $$75,000 outlay and the annual payment of $2,000 for property taxes and insurance? (These funds could be invested at comparable risk to earn a 7% annual return.)

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