Question

needing help

day if the 7 years after depositing 100 20 How much would be in your wavings pays 5 percent interest per year? A) 5735.00 B) SI35.00 C) 140.71 D) 5814.20 2) A deposit or 5500 earns the following interest rates 5 percent in the first year Opercent in the second year, and percent in the third year. What would be the third year future Value A) 5527.14 B) 5595.00 C) S1595.00 D) 5601.02 20 What is the present value of 500 payment made in four years when the discount rate is percent (round your answer to 2 decimal places - i.e. $123.45)? 24) How many years does it take to double a $10,000 investment when interest rates are 3 percent per year (answer must be rounded to 1 decimal places - i.e. 12.3 years) 5) What interest rate is needed to double a $5.000 investment over four years (answer must be a percentage rounded to I decimal place - i.e. 12.3%).? What is the value in year 3 of a $500 cash flow made in vear 5 when interest rates are 6 percent A) $445 B) $374 C) $440 D) $420 What annual rate of return is earned on a $5,000 investment when it grows to $7,000 in six ears? A) 1.40 percent B) 5.77 percent C) 5.45 percent be sie aber D) 40.00 percent mario A: At age 19 you invest $1,500 that earns 8 percent per year. Scenario B: At age 30 invest $1,500 that earns 13 percent per year. Under which scenario would you have me ey at age 55 and what is the dollar difference at age 55 between the two scenarios? Scenario B, $7,893.55 B) Scenario A, $1,085.49 cenario B, $4,179.36 D) Scenario A, $2,104.73 ou

Answer 1

First 2 questions are being answered here.

1. Option (C) is correct

Here we will use the following formula:

FV = PV * (1 + r%)ⁿ

where, FV = Future value, PV = Present value = $100, r = rate of interest = 5%, n= time period = 7

now, putting theses values in the above equation, we get,

FV = $100 * (1 + 5%)⁷

FV = $100 * (1 + 0.05)⁷

FV = $100 * (1.05)⁷

FV = $100 * 1.40710042266

FV = $140.71

So, after 7 years, there will be $140.71

2. Option (D) is correct

Here we will use the following formula:

FV = PV * (1 + r₁%)¹ *  (1 + r2%) *  (1 + r3%)

where, FV = Future value, PV = Present value = $500, r₁ = rate of interest in first year = 5%, rate of interest in second year = 6%,rate of interest in third year = 8%,

now, putting theses values in the above equation, we get,

FV = $500 * (1 + 5%)¹ * (1 + 6%) * (1 + 8%)

FV = $500 * (1 + 0.05) * (1 + 0.06) * (1 + 0.08)

FV = $500 * (1.05) * (1.06) * (1.08)

FV = $601.02

So, future value after 3 years is $601.02