Question 888237: (a) The future value of $400 in two years that earns 5 percent.
(b) The future value of $1,200 saved each year for ten years that earns 7 percent..
(c) The amount a person would need to deposit today with a 5 percent interest rate to have $2,000 in three years.
(d) The amount a person would need to deposit today to be able to withdraw $6,000 each year for ten years from an account earning 6 percent.
(e) A person is offered a gift of $5,000 now or $8,000 five years from now. If such funds could be expected to earn 8 percent over the next five years, which is the better choice?
(f) A person wants to have $3,000 available to spend on an overseas trip four years from now. If such funds could be expected to earn 7 percent, how much should be invested in a lump sum to realize the $3,000 when needed?
(g) A person who invests $1,200 each year finds one choice that is expected to pay 9 percent per year and another choice that may pay 10 percent. What is the difference in return if the investment is made for 15 years?
(h) A person invests $50,000 in an investment that earns 6 percent. If $6,000 is withdrawn each year, how many years will it take for the fund to run out?
Answer by oscargut(2103)   (Show Source):
You can put this solution on YOUR website! I a) and b) here
a) $400(1.05)^2 = $441
b) $1200(1.07)^10 = $2360.58
If you need more help you can contact me at:
mthman@gmail.com
Thanks
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