4-5

4-16

4-22

4-23

4-5 one year earning an interest rate of 9 percent per year? (LG4-2) Multiyear Future Value How much would be in your savings account in 11 years after depositing $150 today if the bank pays 8 percent per year? (LG4-3) . ........... Value Compute the value in 25 years of a $1,000 4-16 investment when interest rates are 7 percent per year? (LG4-6) Rule of 72 Approximately how many years are needed to double a $500 investment when interest rates are 10 percent per year? (LG4-6). Rule of 72 Approximately what interest rate is needed to double an 4-17 4-22 Interest-on-Interest Consider a $5.000 deposit earning 10 percent inter- est per year for ten years. What is the future value, how much total inter- est is earned on the original deposit, and how much is interest earned on interest? (LG4-3) 4-23 Comparing Cash Flows What would be more valuable, receiving $500 today or receiving $625 in three years if interest rates are 7 percent? Why? (LG4-5)