Question
1. What is the present value of $20,000 to be received in 15 years? Your required rate of return is 7% per year. 2. If
1. What is the present value of $20,000 to be received in 15 years? Your required rate of return
is 7% per year.
2. If you invest $2,000 a year for 10 years at 8% annual interest, how much will you have at the
end of the 10th year?
3. If you buy a 10 year, 2% CD for $15,000. How much is it worth at maturity?
4. How many years will it take to double your investment of $8,500 at an interest rate of 7%
5. If you make a $20,000 on investment in stock today, and hold the investment for 15 years
and decide to sell the entire investment, how much money (before tax) will you receive. Interest
earned on this investment has been 9% per year.
6. You make a 12,500 investment. How many years will it take the investment to grow to
$18,000 if the investment earns 5% per year?
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