1.Today you are depositing $518 in a bank account that promises to pay 6% interest annually. How much interest will you have earned at the end of one year? Round your answer to the nearest cent.
2Today you are depositing $134 in a bank account that promises to pay 6.4% interest, annually compounded. How much interest will you have earned at the end of two years? Round your answer to the nearest cent.
3.If I borrow $1000 from my bank today and they charge interest at a rate of 3.3 percent, annually compounded, how much will I have to pay back when the loan matures one year from now? Round your answer to the nearest cent.
4.What is the future value of $493 invested today at 9 percent interest compounded annually for 8 years? Round your answer to the nearest cent
5.What is the present value of $541 to be received in 9 years? The discount rate is 10 percent. Round your answer to the nearest cent
6.Elaine has just received an insurance settlement of $26652. She wants to save this money until her daughter goes to college. If she can earn an average of 5.2 percent, compounded annually, how much will she have saved when her daughter enters college 5 years from now? Round your answer to the nearest cent.
7.Six years from now, you will be inheriting $13452. What is this inheritance worth to you today if you can earn 9.5 percent interest, compounded annually? Round your answer to the nearest cent.
8.You have just made a $1155 contribution to your individual retirement account. Assuming you earn a 5.9 percent rate of return and make no additional contributions, what will your account be worth when you retire in 28 years? Round your answer to the nearest cent.
9.Say you want to have $50,000 for a down payment on a house 5 years from now. If you can earn 6.5 percent on your investment, how much would you have to invest now to meet your goal? Round your answer to the nearest cent.
10.An investment opportunity offers to pay out $116 two years for now. In order to receive this payout, you must invest $81 today. What annual rate of return is this investment offering? Put your answer in decimal form and round to four decimal places (i.e., 1.5% = 0.0150).