Question 1

Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. What would be the future value if the interest rate is a simple interest rate?

Question 2

Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. What would be the future value if the interest rate is a compound interest rate?

Question 3

Determine the future values if $5,000 is invested in each of the following situations:

5 percent for ten years

Question 4

Determine the future value if $5,000 is invested in each of the following situations:

7 percent for seven years

Question 5

Determine the future value if $5,000 is invested in each of the following situations:

9 percent for four years

Question 6

Find the present value of $7,000 to be received one year from now, assuming a 3 percent annual discount interest rate. Also calculate the present value if the $7,000 is received after two years.

Question 7

Use a financial calculator or computer software program to answer the following questions:

What would be the future value of $15,555 invested now if it earns interest at 14.5 percent for seven years

Question 8

What would be the future value of $19,378 invested now if the money remains deposited for eight years and the annual interest rate is 18 percent?