2010-07-08_041620_How_much_would_you_have_to_invest_today_to_receive

2010-07-08_041620_How_much_would_you_have_to_invest_today_to_receive

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a. If you invest $10,000 today, how much will you have in: 2 years @ 7% 7 years @ 10% 25 years @ 15% *25 years @ 18%  *compounded semi-annually for this last scenario.  A = P(1 + r/100n)^(nt)  (a) A = 10000(1 + 7/100)^2 =  $11449.00  (b) A = 10000(1 + 10/100)^7 =  $19487.17  (c) A = 10000(1 + 15/100)^25 =  $32918.95  (d) A = 10000(1 + 18/200)^50 =  $74357.52   b. If you invest $2,000 per year in a retirement account, how much will you have in: 8 years at 8% 10 years at 9% 12 years at 10% 15  years at 11%  (a)  Each Payment, PMT =  $2,000.00  Interest Rate, R % =  8 Compounding Frequency per year, N = 1 Time in Years, T = 8 Interest Rate per Period,   =   ι 0.08 Number of Periods, p =  8 FV (Ordinary) = PMT * [{(1 +  )^p} - 1] /   =  ι ι $21,273.26 (b)  Each Payment, PMT =  $2,000.00  Interest Rate, R % =  9 Compounding Frequency per year, N =
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This note was uploaded on 01/05/2012 for the course 101 melissa jo taught by Professor Acc101 during the Spring '11 term at Aarhus Universitet.

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2010-07-08_041620_How_much_would_you_have_to_invest_today_to_receive

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