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Part 1: Future Value & Present Value Calculations - Use the present and future value tables at the end of this document (or in your
Part 1: Future Value & Present Value Calculations - Use the present and future value tables at the end of this document (or in your text) to complete the following questions. ROUND YOUR ANSWERS TO THE NEAREST WHOLE DOLLAR 1. You deposit $10,000 in an investment fund today. The fund will earn 12% per year. How much will the fund grow to if you leave the entire deposit and all interest earned in the fund for 20 years? 2. How much would you be willing to accept today in exchange for an investment that will pay $1,000 per year for 15 years, assuming a 5% interest rate? 3. You plan to invest $1,000 in a savings account at the end of each of the next 10 years. The savings account earns interest of 8% compounded annually. What will the balance in the savings account be at the end of 10 years? 4. You would like to have $100,000 in 8 years. How much do you have to invest today, assuming a 4% interest rate
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