TVM practice problems

# TVM practice problems - TVM PRACTICE PROBLEMS 1. You...

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TVM PRACTICE PROBLEMS 1. You received a \$3,000 academic award this year. You placed it in a savings account paying 8% annual interest. Inflation is running at an annual rate of 4.17%. Controlling for inflation, How much will your account be worth in 5 years? 2. What is the Future Value of a one time deposit of \$700 if it is invested in an account for 35 years and earns an annual percentage rate of 10% compounded annually? 3. What is the Future Value of a one time deposit of \$700 if it is invested in an account for 35 years and earns an annual percentage rate of 10% compounded annually? 4. Henry is due to receive his \$800,000 inheritance when he turns 40. However, currently at age 35 he has grown impatient. He wants his share now. If his inheritance is earning an annual percentage rate of 15%, how much will Henry receive if he receives his inheritance today? 5. Anna wants to have \$10 million dollars in her retirement account when she retires in 15 years. She found a savings account that pays her an annual rate of return of

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## This note was uploaded on 06/06/2011 for the course HACE 3200 taught by Professor B during the Spring '09 term at University of Georgia Athens.

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TVM practice problems - TVM PRACTICE PROBLEMS 1. You...

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