Time Value Questions

1.Bob deposits the amount of $115in his bank account today, and plans to deposit the amount of $175in the same account one year from today, and finally plans to deposit the amount of $200in the same account two years from now. If the interest rate is5.35%, how much will Bob have accumulated in his account three years from today?

2.Suppose you place $70in a bank account that earns6% interest. How much would you have accumulated in the account after7years if the bank offers interest paid continuously?

3.A local bank has two saving options. One offers 6% interest compounded on a daily bases while the other offers 6.5% compounded quarterly. Which saving option would you choose?