Reference no: EM131096298
TIME VALUE OF MONEY ASSIGNMENT
1. What will a deposit of $4,500 at 10% compounded semi-annually be worth if left in the bank for six years?
2. How long does it take for $5,000 to grow into $6,724.44 at 10% compounded quarterly?
3. How much must you deposit at the end of each year in an account that pays an annual interest rate of 20 percent, if at the end of 5 years you want $10,000 in the account?
4. How much will an ordinary annuity of $650 per year be worth in eight years at an annual interest rate of 6 percent?
5. The Wintergreens are planning ahead for their son's education. He's eight now and will start college in 10 years. How much will they have to set aside at the end of each year to have $65,000 in 10 years if the annual interest rate is 7%?
6. What annual interest rate would you need in order to have an ordinary annuity of $7,500 per year accumulate to $279,600 in 15 years?
7. The Tried and True Corporation had earnings of $0.20 per share in 1978. By 1995, a period of 17 years, its earnings had grown to $1.01 per share. What was the compound annual rate of growth in the company's earnings?
8. What is the present value of $800 to be received at the end of 8 years, assuming an interest rate of 20 percent, quarterly compounding?
9. Thirty years ago, Jesse Jones bought 10 acres of land for $1,000 per acre in what is now downtown Houston. If this land grew in value at an annual interest rate of 8 percent, what is it worth today?
10. A $10,000 car loan has payments of $361.52 due at the end of each month for three years. What is the nominal interest rate?
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: What will a deposit of $4,500 at 10% compounded semi-annually be worth if left in the bank for six years. How long does it take for $5,000 to grow into $6,724.44 at 10% compounded quarterly. How much must you deposit at the end of each year in an acc..
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