Time Value Analysis?

If you deposit $10,000 in a hill description that pays 10 percent interest annually, how much
money will be in your justification after 5 years?
What is the present utility of a financial guarantee that promises to compensate you $5,000 within 20 years? Assume
that you can earn 7 percent if you be to invest in other securities of equal risk.
If you deposit money today into an commentary that pays 6.5 percent interest, how long will it take
for you to double your money?
John Roberts have $42,180.53 contained by a brokerage details, and he plans to contribute an additional
$5,000 to the justification at the closing stages of every year. The brokerage article have an expected annual
return of 12 percent. If John’s desire is to store up $250,000 contained by the description, how abundant years
will it rob for John to get his desire?
Your parents are planning to retire in 18 years. They currently own $250,000, and they would
resembling to enjoy $1,000,000 when they retire. What annual rate of interest would they hold to earn
on their $250,000 contained by charge to make their aspiration, assuming they gather no more money?
What is the adjectives plus of a 5-year familiar annuity that promises to reimburse you $300 respectively year?
The rate of interest is 7 percent.
What is the adjectives worth of a 5-year annuity due that promises to pay envelope you $300 respectively year? Assume
that adjectives payments are reinvested at 7 percent a year, until Year 5.

Answers:
It is adjectives around time valued formula:

P = A (1+i)^n

P = The amount of money by finale of n years and i interest rate
A = Initial investment
i = interest rates. If it is 3%, put it as 0.03
n = number of years the investment pocket place
Homework, I'll bet.


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