The following situations involve the application of the time value of the money concept. Use the full factor when calculating your results.
Use the appropriate present or future value table:
FV of $1, PV of $1, FV of Annuity of $1, and PV of Annuity of $1
1.Janelle Carter deposited $9,690 in the bank on January 1, 2000, at an interest rate of 10% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar.
$fill in the blank 1
2.Mike Smith deposited $20,830 in the bank on January 1, 2007. On January 2, 2017, this deposit has accumulated to $64,695. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit? Round to the nearest whole percent.
fill in the blank 2 %
3.Lee Spony made a deposit in the bank on January 1, 2010. The bank pays interest at the rate of 11% compounded annually. On January 1, 2017, the deposit has accumulated to $13,570. How much money did Lee originally deposit on January 1, 2010? Round to the nearest whole dollar.
$
4.Nancy Holmes deposited $6,840 in the bank on January 1 a few years ago. The bank pays an interest rate of 9% compounded annually, and the deposit is now worth $14,856. How many years has the deposit been invested? Round to the nearest whole year.
= 4 years