D E F G H M N N o P. Q 1 1. The owner of the MCU Hotel invested $10,000 today for 10 years, with annual interest of 8% compounded annually, and he desires to know how much each investment will grow to at the end of its life. R T 2 2. He also desires to know the amount of money that must be invested today to accumulated $100,000 five years in the future. The options are as follows: 3 a. x amount at an annual rate of interest of 10% b.x amount at a semi-annual rate of interest of 5% 5 c. x amount at a quarterly rate of interest of 2% 4 6 7 8 ANSWER 9 1 Present value = 10000 10 10 Annual interest rate = 8% 11 Period = (number) 12 Future value = 24 (formula) 13 13 12 14 14 2 15 a Future value 100000 16 Annual rate of interest 10% 17 17 Period = (number) 18 Present value = (formula) 19 19 20 b b 20 Future value 100000 21 21 Annual rate of interest 5% 22 Period = (number) 20 23 Present value = (formula) 24 27 25 c Future value = 100000 20 26 Annual rate of interest 2% 27 Period (number) 28 Present value = (formula) 29 30