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Practice Time Value of Money Problems 1. How much will be in an account at the end of 5 years if you deposit $10,000 today
Practice Time Value of Money Problems 1. How much will be in an account at the end of 5 years if you deposit $10,000 today at 8.7% annual interest, compounded semi-annually? 2. What is the balance at the end of 10 years if $2.500 is deposited today and the account earns 4% interest annually? What about if it's quarterly interest? Which one should be more and why? 3. Suppose you want to have $500,000 saved by the time you reach 30 years old. You are 20 years old today. If you can earn 5.73% annually on your savings, how much do you need to invest today? Do you need to invest more or less if the interest rate increases to 7.9%? 4. How long does it take for your money to grow to 10 times its original value at 5% annual interest? 5. How much must I deposit in an account today so that I can withdraw $100 per year for four years, beginning at the end of two years from now, if my deposits eam 5% interest, compounded annually
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