Reference no: EM132747545

Questions -

1. How much would be in your savings account in 11 years after depositing $150 today, if the bank pays 7% per year?

2. A deposit of $350 earns the following interest rates: (a) 8% in the first year, (b) 6 in the second year, and (c) 5.5 in the third year. What would be the third year future value?

3. Compute the present value of an $850 payment made in 10 years when the discount rate is 12%.

4. What annual rate of return is earned on a $5,000 investment when it grows to $9,500 in five years?

5. What is the rate of interest if your money doubles every 6 years? This is also known as Rule of 72.

6. Given the same annual interest rate, would you rather have a savings account that paid interest compounded on a monthly basis, or one that compounded interest on an annual basis? Perform the calculation to support your answer.