Future value-present value-finding required interest rate


Please assist me out with the following questions.

Question 1 -Future value:

If you deposit $ 10,000 in a bank account that pays 10 percent interest annually, how much would be in your account after 5 years?

Question 2- Present value:

What is the present value of a security that will pay $ 5,000 in 20 years if securities of equal risk pay 7 percent annually?

Question 3- Finding the required interest rate:

Your parents will retire in 18 years. They currently have $ 250,000, and they think they will need $ 1,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Future value-present value-finding required interest rate
Reference No:- TGS02034879

Now Priced at $25 (50% Discount)

Recommended (97%)

Rated (4.9/5)