Homework answers / question archive / 1)(Future value) To what amount will the following investments accumulate?         $5,000 invested for 10 years at 10 percent compounded annually $8,000 invested for 7 years at 8 percent compounded annually $775 invested for 12 years at 12 percent compounded annually $21,000 invested for 5 years at 5 percent compounded annually 2

1)(Future value) To what amount will the following investments accumulate?         $5,000 invested for 10 years at 10 percent compounded annually $8,000 invested for 7 years at 8 percent compounded annually $775 invested for 12 years at 12 percent compounded annually $21,000 invested for 5 years at 5 percent compounded annually 2

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1)(Future value) To what amount will the following investments accumulate?

• $5,000 invested for 10 years at 10 percent compounded annually
• $8,000 invested for 7 years at 8 percent compounded annually
• $775 invested for 12 years at 12 percent compounded annually
• $21,000 invested for 5 years at 5 percent compounded annually

2.  (Future value) You are hoping to buy a house in the future and recently received an inheritance of $20,000. You intend to use your inheritance as a down payment on your house.

• If you put your inheritance in an account that earns a 7 percent interest rate compounded annually, how many years will it be before your inheritance grows to $30,000? 22 years
• If you let your money grow for 10.25 years at 7 percent, how much will you have?
• How long will it take your money to grow to $30,000 if you move it into an account that pays 3 percent compounded annually? How long will it take your money to grow to $30,000 if you move it into an account that pays 11 percent?

3.  (Present value) Anita Solomon would like to make a single investment and have $2 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today?

4.  (Solving for n) How many years will the following take?

• $500 to grow to $1,039.50 if it’s invested at 5 percent compounded annually
• $35 to grow to $53.87 if it’s invested at 9 percent compounded annually
• $100 to grow to $298.60 if it’s invested at 20 percent compounded annually
• $53 to grow to $78.76 if it’s invested at 2 percent compounded annually