Question

If you invest $9,000 today, how much will you have

a. In 2 years at 9 percent?

b. In 7 years at 12 percent?

c. In 25 years at 14 percent?

d. In 25 years at 14 percent (compounded semiannually)?

Include financial calculator steps, including the keys pressed on the calculator to solve each question.

Answer 1

Using Financial Calculator:

a.

PV = -9000

PMT = 0

N =2 = 2

I/Y = 9

CPT -> FV

FV = 10692.90 Answer

b.

PV = -9000

PMT = 0

N =7

I/Y = 12

CPT -> FV

FV = 19896.13 Answer

c.

PV = -9000

PMT = 0

N =25= 25

I/Y = 14

CPT -> FV

FV = 238157.24 Answer

d.

PV = -9000

PMT = 0

N =25*2 = 50

I/Y = 7

CPT -> FV

FV = 265113.23 Answer

Kindly do inform me in case you have any queries.