2 a.

Ms. Stormy anticipates receiving $50,000 at the end of five years from her bank account. If the rate of interest is 8 percent, compounded annually, how much money Stormy must have put aside in the bank account today?

I.

$46,296.63

II.

$54,000

III.

$73,466.40

IV.

$34,029.19

V.None of the options specified here

b. Edward Hill needs $25,000 at the end of 5 years. He currently has $5,000 to invest. At what rate should he invest his money?

c. Ryan needs $16,000 to buy a new car. If he has $2,000 to invest at 20%, compounded annually, how long will he have to wait to buy the car?

d. At what rate should you invest your money today so that your investment gets tripled in 8 years?

e. At what rate must $400 be compounded annually for it to grow to $716.40 in 10 years?

f.

At 8 percent compounded annually, how long will it take $750 to become $1500?

	I.	6.5 years
	II.	48 months
	III.	9 years
	IV.	12 years
	V.	None of the options specified here