Time Value of Money

Time Value of Money 1. If you deposit $1,000 at the end of each year in a savings account earning 4 percent annually, how much will you have in 10 years? 2. If we want $8,000 in 6 years (and the discount rate is 10%), how much should be deposited each year? 3. Calculate the present value of a $100 annuity received annually for 10 years when the discount rate is 6%. 4. Suppose Sparaco decides that they need to have $5,300 after eight years. How much will they have to deposit at the end of each year to accumulate this amount. Interest rate is 5 %