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How to calculate future value in budgeting

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Reference no: EM132425183

1. You were given $1000 for your high school graduation. You invest it in a bank that will give you 7% interest annually. How much do you have in 4 years when you graduate from college?

2. What is the future value of $5000 at 9% interest compounded annually over 10 years?

3. You purchase a US Savings bond for $2000 that offers an annual interest rate 5%. How much is it worth after 20 years?

4/5. Your best friend wins the lottery and gives you a gift option. You need to complete both problems to make your decision.

4. As one gift option, they offer to give you the interest only from a $1,000,000 investment with an interest rate of 8% that compounds annually. How much interest do you receive in 5 years?

5. As another gift option, they offer to give you the interest only from $2,000,000 investment with an interest rate of 7% that compounds semi-annually. How much interest do you receive in 2.5 years?

6. What is the future value of $13,000 at 10% compounded semi-annually over 10 years?

7. What is the future value of $13,000 at 10% interest compounded quarterly over 10 years?

8. I receive my tax return of $5000 and deposit it in an interest bearing account at the bank. It receives 7% interest compounding quarterly. What is the amount of interest that you earned after 10 years?

9. What is the future value of $10,000,000 at 5% interest compounded quarterly over 20 years?

10. What is the future value of $250,000 at 7.5% interest compounded semi-annually over 15 years?

Reference no: EM132425183

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