TVM-1 - TVM 1 $1,%annualinterestfor5 years 2...

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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? 2. Calculate the future value of $60,000 at 12% for (i) 5 years, (ii) 20 years. 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.  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. 5. Calculate the present value of (i) $50,000 and (ii)  $125,000 using a 6 percent discount  rate for 15 years. 6. Calculate the present value of $10,000 thirty –year annual ordinary annuity at a 6  percent discount rate.
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7. Beginning a year from now, Bernardo O’Reilly will receive $20,000 a year from his 
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This note was uploaded on 03/08/2011 for the course TAP 2344 taught by Professor Bruno during the Spring '11 term at FIU.

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TVM-1 - TVM 1 $1,%annualinterestfor5 years 2...

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