Assignment
1. You were given $1000 for your high school graduation. You invest it in a bank that will give you 7% interest annually. How much do you have in 4 years when you graduate from college?
2. What is the future value of $5000 at 9% interest compounded annually over 10 years?
3. You purchase a US Savings bond for $2000 that offers an annual interest rate 5%. How much is it worth after 20 years?
4/5. Your best friend wins the lottery and gives you a gift option. You need to complete both problems to make your decision.
4. As one gift option, they offer to give you the interest only from a $1,000,000 investment with an interest rate of 8% that compounds annually. How much interest do you receive in 5 years?
5. As another gift option, they offer to give you the interest only from $2,000,000 investment with an interest rate of 7% that compounds semi-annually. How much interest do you receive in 2.5 years?
6. What is the future value of $13,000 at 10% compounded semi-annually over 10 years?
7. What is the future value of $13,000 at 10% interest compounded quarterly over 10 years?
8. I receive my tax return of $5000 and deposit it in an interest bearing account at the bank. It receives 7% interest compounding quarterly. What is the amount of interest that you earned after 10 years?
9. What is the future value of $10,000,000 at 5% interest compounded quarterly over 20 years?
10. What is the future value of $250,000 at 7.5% interest compounded semi-annually over 15 years?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.