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 10thyear?
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 he'll need to get rid of his current vehicle).If he can earn 9% interest, how much must he depositnowin 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 investnow?
9. Maria would like to know the difference in account values if she:
10. Invested $10,000 for 5 years @ 8%, simple interest
11. Invested $10,000 for 5 years @ 8%, compounding interest