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Problem 1: To what amount will $4800 invested for 9 years at 11 percent compounded annually accumulate?
A. $4800 Invested for 9 years at 11 percent compounded annually will accumulate to $____
Problem 2: Future Value - Leslie Mosallam who recently sold her Porsche, placed $8600 in a savings account paying annual compound interest of 7 percent
a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 3,7, and 17 years.
b. Suppose Leslie moves her money into an account that pays 9 percent or one that pays 11 percent. Rework part A using 9 percent and 11 percent
c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you just did?
Financial Statement Analysis and Preparation
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