TVManswers - TVM 1.

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TVM 1. What is the future value of $1,000 invested today if you earn 7% annual interest for 5  years? FV = 1000*1.4026 = $1402.60 2. Calculate the future value of $60,000 at 12% for (i) 5 years, (ii) 20 years. (i) FV = 60000*1.7623 = $105,738 (ii) FV = 60000*9.6463 = $578,778 3. How much money would Ruby Carter need to deposit in her savings account at Great  Western Bank today in order to have $16,850.58 in account after 5 years?  Assume she  makes no other deposits, or withdrawals and the bank guarantees an 11 percent annual  interest rate, compounded annually. 16850.58 = X*1.6851, X = $1,000 4. Starting today you invest $1200 a year into your individual retirement account (IRA).  If  your IRA earns 12 percent per year, how much will be available at the end of 30 years. FVA = 1200*241.3327 = $289,599
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This note was uploaded on 03/08/2011 for the course SLS 2000 taught by Professor Mitchell during the Spring '06 term at FIU.

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TVManswers - TVM 1.

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