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Lesson3Assignment2

# Lesson3Assignment2 - L esson#3 Assignment#2 C hapter 5...

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Chapter 5 Assignment Solve the following problems; you may submit in a Word or Excel document, whichever you find convenient. As always, it is recommended that you show your work so that in the event your final answer is incorrect, your instructor may be able to award you partial credit. 1. You are scheduled to receive \$20,000 in two years. When you receive it, you will invest it for six more years at 8.4% per year. How much will you have in eight years? (Question #19 from page 143 of your text) 20,000 investment at 8.4% interest rates each year for 6 years gives: 20,000x1.084^6 = \$32,449.32= \$32,500 in eight years 2. You expect to receive \$10,000 in two years. You plan on investing it at 11% until you have \$75,000. How long will you wait from now? (Question #20 from page 143) I year: 10000+10000X11%=11.100 II year: 11000+11100X11%=12.221 III year:12.221+12.221X11%=13.565 IV year: 13565+13565X11%=15.057 V year: 16.713 VI year: 16.713+16.713X11%=18.551 VII year: 18.551+18.551X11%=20.591

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Lesson3Assignment2 - L esson#3 Assignment#2 C hapter 5...

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