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Questions 1: Calculate the Future Value of $200, 8 years, 8% (See PPT Slide 15) Year Value of Beginning of year Simple interest Interest On

Questions 1: Calculate the Future Value of $200, 8 years, 8% (See PPT Slide 15)

Year

Value of Beginning of year

Simple interest

Interest

On

Interest

Total (Compound) Interest

Value at End of Year

1

+

=

2

+

=

3

+

=

4

+

=

5

+

=

6

+

=

7

+

=

8

+

=

Question 2: 72 Rule (see PPT slide 39)

A] Investor who invested $1,000 with an annual inflation rate of 2%. How many years will the investor lose his/her principle?

B] Investor who invested real property $1,000,000, 4.5%. How many years will the investor double his/her investment?

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