Investments problem-time value of money


Problem 1:  Starting with $10,000, how much will you have in 10 years if you can earn 15 percent on your money?

Problem 2: If you inherited $25,000 today and invested all of it in a security that paid a 10 percent rate of return, how much would you have in 25 years?

Problem 3: If the average new home costs $125,000 today, how much will it cost in 10 years if the price increases by 5 percent each year?

Problem 4: If you can earn 12 percent, how much will you have to save each year if you want to retire in 35 years with $1 million?

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Finance Basics: Investments problem-time value of money
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