What would be an equivalent present value

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Problem 1: Barney deposited $10,000 into an account and in 5 years it had grown to $12,500. What is the annual rate of interest and what was the interest earned at the end of the fifth year.

Problem 2: Your aunt Gertrude always loved you the most out of all her nieces and nephews. You would always help her with chores around the house and as such she promised to give you $18,000 in five years from now. You are super excited to receive this money as you want to invest it for five years. You are going to purchase Lightspeed POS stock which is expected to give you a return of 8.6% per year. How much will you have at the end of this time? What would be an equivalent Present Value?

Reference no: EM132957571

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