Chapter_5_Practice_Problems

# Chapter_5_Practice_Problems - BUS 320 Chapter 5 Practice...

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BUS 320 Chapter 5 Practice Problems 1. What will \$5,000 be worth in 10 years if it earns 12% per year? 2. What is the present value of \$25,000 received in 15 years if the discount rate is 9%? 3. How many years will it take \$20,000 to grow to \$40,000 if it earns 12%? 4. At what annual rate would \$1,000 have to earn to equal \$3,000 in 10 years? 5. What is the future value of \$500 per month received at the end of each month for 12 years if your account earns 8% annually, compounded monthly? 6. What is the present value of \$1,000 received at the beginning of each month for 15 years if the discount rate is 10%? 7. What is the future value of \$3,000 invested at the beginning of each year for 40 years at 10%? 8. What is the present value of \$1,000 received in 1 year, \$2,000 received in 2 years, \$5,000 received in 3 years, and \$10,000 received in 5 years at a discount rate of 8%? 9. What is the monthly mortgage payment on a 30-year \$200,000 home loan at 8%? 10.
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## This note was uploaded on 01/11/2011 for the course BUS 320 taught by Professor Sloan during the Winter '08 term at N.C. State.

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