Option #1: Time Value of Money Calculations

Complete the Problems below:

1. Ifyoudeposit$5,000inabankaccountthatpays8%interestannually,howmuchwillyouraccountbalancebein5years?
3. Whatisthepresentvalueofasecuritythatwillpay$50,000in10yearsifsecuritiesofequalriskpay6%?
5. Youareplanningtoretirein25yearsandcurrentlyhave$250,000inyourretirementaccount.Youthinkyouwillneed$1,000,000atretirement.Whatinterestratemustyouearntoachievethatgoal,assumingnoadditionalamountsareaddedtothesavingsaccount?
7. Ifyoudepositmoneytodayinanaccountthatpays7%annualinterest,howlongwillittakeyoutodoubleyourmoney?
9. Youhave$50,000inabrokerageaccount,andyouplantodepositanadditional$8,000attheendofeveryfutureyearuntilyouraccounttotalreaches$300,000.Youexpecttoearn10%annuallyontheaccount.Howmanyyearswillittakeyoutoreachyourgoal?
11. Whatisthefuturevalueofa7%,5-yearordinaryannuitythatpays$500eachyear?Ifthiswasanannuitydue,whatwoulditsfutureamountbe?
13. Youwonthelottery,andtheyagreetogiveyou$50,000peryearattheendofeachyearforthenext25years,oryoucantakealumpsumtoday.Ifthelotteryusesadiscountrateof6%,whatwouldbethelumpsumthatyoucouldtaketoday?
15. Youjustborrowed$250,000fromabanktopurchaseanewhomeandhavetorepaythebankinequalpaymentsattheendofeachyearforthenext30years.Howmuchwilltheannualpaymentsbeiftheloaninterestrateis5%?
17. Find how much $1,000 will under each of the following conditions:
    1. 12% compounded annually for 5 years
    2. 12% compounded semiannually for 5 years
    3. 12% compounded quarterly for 5 years