Question
Please show work for the following answers and make it clear. I will rate you and your answer high :) 1. Future value: Chuck Tomkovick
Please show work for the following answers and make it clear. I will rate you and your answer high :)
1. Future value: Chuck Tomkovick is planning to invest $25,000 today in a mutual fund that will provide a return of 8 percent each year. What will be the value of the investment in ten years?
2. Present value: Tracy Chapman is saving to buy a house in five years. She plans to put 20 percent down at that time, and she believes that she will need $35,000 for the down payment. If Tracy can invest in a fund that pays 9.25 percent annually, how much will she need to invest today?
3. Interest rate: You are in a desperate need of cash and turn to your uncle, who has offered to lend you some money. You decide to borrow $1,300 and agree to pay back $1,500 in two years. Alternatively, you could borrow from your bank that is charging 6.5 percent interest annually. Should you go with your uncle or the bank?
4. Number of periods: You invest $150 in a mutual fund today that pays 9 percent interest annually. How long will it take to double your money?
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