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How many years has the deposit been invested

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Question - Time Value of Money Concept - The following situations involve the application of the time value of money concept. Use the full factor when calculating your results.

Use the appropriate present or future value table: FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1

1. Janelle Carter deposited $9,760 in the bank on January 1, 2000, at an interest rate of 10% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar.

2. Mike Smith deposited $21,290 in the bank on January 1, 2007. On January 2, 2017, this deposit has accumulated to $38,127. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit? Round to the nearest whole percent.

3. Lee Spony made a deposit in the bank on January 1, 2010. The bank pays interest at the rate of 5% compounded annually. On January 1, 2017, the deposit has accumulated to $16,410. How much money did Lee originally deposit on January1, 2010? Round to the nearest whole dollar.

4. Nancy Holmes deposited $6,420 in the bank on January 1 a few years ago. The bank pays an interest rate of 12% compounded annually, and the deposit is now worth $22,332. How many years has the deposit been invested? Round to the nearest whole year.

Reference no: EM133123723

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