This assignment has two problems.
Hints to help: review future & present value understand what the titles of Appendices A-D mean read the questions and figure out what is being asked
you will use tables A & B......
math required...... 2 multiplications and one subtraction
Problem 1.
If you put $9000 in a savings account that pays interest at a rate of 4 %, compounded annually.....(A. (answer 1 ) What is the total you will have in five years? (Hint: Use the future value formula.) B. (answer 2) How much interest will you earn during the five years? C. (answer 3 ) If you put $9000 each year into a savings account that pays interest at the rate of 4 per cent a year, how much would you have after five years? If you have an older text and your Appendices do not have 4%, interpolate between the per cent's in your text.
Problem 2.
Describe in detail some of the short term investment vehicles that can be used to manage your cash resources. What factors would you focus on if you were concerned that the government deficits associated with the recent financial crisis will lead to a significant in future inflation?