1. Instructions: Read each item below. Use the PVIF and FVIF tables and the simple interest formula to help answer the items below.

1. Joel is going to put $2500 in a savings account at a local bank. The savings account will earn Joel 8% annually, simple interest. How much will Joel have in his account if he leaves the money there for 5 years? 10 years?
2. If Joel had put the $2500 in an account in which the interest compounded annually, how would his account balance differ from the balances in #1 (At 5 years and 10 years)
3. Cade has $5000 available to invest. He has found an opportunity to invest this money at 12% annually. If Cade left this money to grow at this rate (compounding) for 10 years, how much would he have at the end of the 10^th year?
4. If Cade were able to leave it for 15 years, what would the balance be?
5. Cameron wants to have $5000 for a down payment on a vehicle. He plans to purchase the vehicle in approximately 4 years (at the time he thinks hell need to get rid of his current vehicle). If he can earn 9% interest, how much must he deposit now in order to have the money in 4 years?
6. What would the present value of an account be if the future value is $20,000 and it has been compounding at a rate of 6% for the past 5 years?
7. What should Jeff be willing to invest now in order to have $20,000 in 15 years if his investment will compound at a rate of 10% annually.
8. Jordan wants to accumulate $1000 two years from now. If he can earn 6% on his investment, how much should he invest now?
9. Maria would like to know the difference in account values if she:
   1. Invested $10,000 for 5 years @ 8%, simple interest
   2. Invested $10,000 for 5 years @ 8%, compounding interest