Reference no: EM131753201

1. Leon Spear invested $16,800 today in a fund that earns 8% compounded annually.

To what amount will the investment grow in 3 years? To what amount would the investment grow in 3 years if the fund earns 8% annual interest compounded semiannually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Investment at 8% annual interest, compounded semiannually

2. Henry Bautista needs $28,800 in 4 years.

What amount must he invest today if his investment earns 8% compounded annually? What amount must he invest if his investment earns 8% annual interest compounded quarterly? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

Investment at 8% annual interest, compounded quarterly

3. Cindy Willis will invest $24,900 today. She needs $63,826 in 24 years.

What annual interest rate must she earn? (Round answer to 0 decimal places, e.g. 7%.)

4. Steve Newman will invest $10,470 today in a fund that earns 12% annual interest.

How many years will it take for the fund to grow to $45,686?

5. Julia Medavoy will invest $7,780 a year for 16 years in a fund that will earn 5% annual interest.

If the first payment into the fund occurs today, what amount will be in the fund in 16 years? If the first payment occurs at year-end, what amount will be in the fund in 16 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

6. John Madison needs $327,000 in 10 years.

How much must he invest at the end of each year, at 6% interest, to meet his needs? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

7. Adams Fillmore's lifelong dream is to own his own fishing boat to use in his retirement. Adams has recently come into an inheritance of $428,900. He estimates that the boat he wants will cost $341,100 when he retires in 6 years.

How much of his inheritance must he invest at an annual rate of 8% (compounded annually) to buy the boat at retirement? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

8. Morgan Fillmore's lifelong dream is to own his own fishing boat to use in his retirement. Morgan has recently come into an inheritance of $449,600. He estimates that the boat he wants will cost $324,000 when he retires in 5 years.

Assuming quarterly compounding of amounts invested at 8%, how much of Morgan Fillmore's inheritance must be invested to have enough at retirement to buy the boat? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)

9. Newman Freeman is investing $8,590 at the end of each year in a fund that earns 9% interest.

In how many years will the fund be at $197,170? (Round answer to 0 decimal places, e.g. 45.)