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- You are going to invest $5405 in 3 years and $7923 in 6 years. If you expect to earn a return of 8.26%, how much will you have in 10 years? Answer:If you invest $2,000 in an account with an annual yield of 12.0% compounded each month. What is the future value after t years? How long will it take to be worth $4,000? How long will it take to be worth $4,000 if it is continuously compounded?You invest $10,000 into an account that earns 4.5% simple interest each year. Give anequation modeling this situation, and give the total amount you would have after 30 years.
- Suppose you plan to deposit $1000 into an account next year, and increase the deposit each year by 5%. How how much will you have in the account after 10 years if the account earns an effective annual return of 9.25%?Currently, you have $21,000 that you would like to grow to $97,500 within the next 9 years. Assuming interest rate compounds annually, what annual rate of return do you have to earn?how much should you invest now in a single investment if you expect to withdraw $45,000 in 9 years given a 10% return compounded annually?
- Suppose you will need $20,000 in 3 years. How much must you invest per month in order to have $20,000 if money earns an annual rate 12% compounded monthly? How much of the $20,000 is interest?Consider an investment of $X. Suppose that you are able to earn 10% a year on your investment rather than 5% per year over 7 years. At the end of those 7 years, how much extra interest (compared to the original 5%) will you have earned on the investment?Assume you have $100,000 now. If you get an average annual return of 4%, how many years will it take to accumulate $1 million?
- You will invest $31 per month. If the rate is 8.07%, how much will you have in 6 years?If you would like to have $20,000 in 5 years, how much should you invest today if your investment earns 12% per year and compounded annually?You will receive $4,000 three years from now. The discount rate is 10 percent. a) What is the value of your investment two years from now? b) What is the value of your investment one year from now?