Assignment Assignment 1.1-
Solve problems by using the Future Value and Present Value tables and show your solution process step by step including the formulas. You won’t get any credit, if you simply give the answer to the problem. Please email your assignment to me using YourName_Assignment 1 as the subject. Thanks!
Future Value Table
Present Value Table
You deposit $2000 today at 6% interest. How much will you have in 5 years?
You invest $5,000 today. You will earn 8% interest. How much will you have in 4 years?
You have $450,000 to invest. If you think you can earn 7%, how much could you accumulate in 10 years?
If a commodity costs $500 now and inflation is expected to go up at the rate of 10% per year, how much will the commodity cost in 5 years?
How much would you have to deposit now to have $15,000 in 8 years if interest is 7%?
If you want to have $10,000 in 3 years and you can earn 8%, how much would you have to deposit today?
If you think you can sell an asset for $25,000 in five years and you think the appropriate discount rate is 5%, how much would you be willing to pay for the asset today?
