Time Value of Money

A group of employees form Beal Distributing in Sioux Falls won a million dollars from a power ball ticket. Each person received approximately $27,000.00. How much would that money be worth in 20 years if an employee fought the urge to buy a new toy and invested the money at 5%?

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Suppose you received an email that you can expect to receive a $2,000 bonus at the end of each year for the next 20 years. If you invest the $2,000 bonus payments each year at 8%, how much will it grow to be in 20 years?

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You want to have $20,000 in 10 years to have for a down payment to purchase a house. How much would you have to deposit, as a lump sum, today at 7% to have that down payment in 10 years?

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You inherited $100,000. After paying off your credit card balance of $20,000, you invest the remainder. The investment has a 7% interest rate and you plan to leave it invested until you retire in 25 years. How much will your investment be worth at retirement?

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