Time Value of Money Exercises

Ex.1 Jose Reynolds deposited $8,000 in an account paying interest of 4% compounded annually. What amount will be in the account at the end of 4 years? Ex.2 Wingate Company borrowed $80,000 on January 2, 2011. This amount plus accrued interest of 6% compounded annually will be repaid at the end of 3 years. What amount will Wingate repay at the end of the third year? Ex. 3 Pleasant Company has decided to begin accumulating a fund for plant expansion. The company deposited $60,000 in a fund on January 2, 2007. Pleasant will also deposit $30,000 annually at the end of each year, starting in 2007. The fund pays interest at 4% compounded annually. What is the balance of the fund at the end of 2011 (after the 2011 deposit)? Ex. 4 Mandy How plans to buy an automobile and can annual interest rate is 8%, how much can Mandy expect to have as a down payment in 3 years? deposit $2,000 toward the purchase today. If the Ex. 5 Rob Honda plans to buy a home and can deposit $10,000 for the purchase today. If the annual interest rate is 8 % , how much can Rob expect to have for a down payment in 5 years