(a) If you deposit $12,500 in the bank today, what is its future value at the end of seventeen years if it is invested in an account paying 6.50% annual interest, (assuming annual compounding)?

(b) What is the present value of $12,500 to be received in seventeen years if the appropriate interest rate is 6.50% (annual compounding, which is the same as APR)?

We sometimes need to find how long it will take a sum of money (or anything else) to grow to some specified amount. Note that you should enter PV as a negative and FV as a positive.

(a) For example, if a companys sales are growing at a rate of 6.50% per year, approximately how long will it take sales to double? Show your answer to 2 decimals (x.xx years)

(b) If you want an investment to triple in seventeen years, what interest rate must it earn? Show your answer to 2 decimals (x.xx%)