What is the rate of return required to accumulate

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Calculate the following time value of money problems using Excel or Word (show your work):

Question 1: If you want to accumulate $500,000 in 20 years, how much do you need to deposit today that pays an interest rate of 15%?

Question 2: What is the future value if you plan to invest $200,000 for 5 years and the interest rate is 5%?

Question 3: What is the interest rate for an initial investment of $100,000 to grow to $300,000 in 10 years?

Question 4: If your company purchases an annuity that will pay $50,000/year for 10 years at a 11% discount rate, what is the value of the annuity on the purchase date if the first annuity payment is made on the date of purchase?

Question 5: What is the rate of return required to accumulate $400,000 if you invest $10,000 per year for 20 years. Assume all payments are made at the end of the period.

Reference no: EM132451544

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