1
.
Find the future value of $100 in five years at 5% interest.
2
.
Find the future value of $1,800 in 3 years at 8% interest.
3
.
How much would you have to deposit now to have $15,000 in eight years if interest is 7%?
4
.
What is the present value of $5,000 that will be paid to you eight years from today at 8% interest?
5
.
How many years will it take a $700 balance to grow into $900 in an account earning 5%?
6
.
If you borrow $1,000 and pay back $1,728 in three years, what annual rate of interest are you paying?
7
.
How long will it take you to triple your money at 8%?
8
.
A company’s sales were $250 million in 2019. If sales grow at 6% per year, how large will they be 10 years later, in 2029 (as expressed in millions)?
9
.
A US government bond in the amount of $1,000 will mature in six years, has no coupon payments, and carries an interest rate of 8%. What is the value of this bond today?
10
.
You spend $725.00 to purchase a $1,000 bond that will have no coupon payments and matures in 12 years. What interest rate will you be earning on this bond?
11
.
At what interest rate would you be ambivalent about receiving either $50,000 10 years from now or $35,000 today?
12
.
Vance Corporation had earnings last year of $3.25 per share. The company has experienced 8% annual growth over the last several years, and management expects that growth rate to continue. Based on this information, after how long will earnings per share double?
13
.
What is the amount of total interest dollars earned on a $5,000 deposit earning 6% for 20 years?
14
.
You have decided that you will sell your $300,000 house when it appreciates in value to $500,000. If houses are appreciating at an average annual rate of 5% in your neighborhood, for approximately how long will you be staying in your house?
15
.
You just won some money in the lottery and would like to save a portion of it so that you will have $50,000 to put a down payment on a house in five years. Your bank pays a 5% rate of interest. How much money will you have to set aside from the lottery winnings?
16
.
Bauer Bookstore sells books before they are published. Today, they offered the book Journeys in Finance for $14.20, but the book will not be published for another two years. Upon publishing, the price of the book will be $24.00. What is the discount rate Bauer Bookstore is offering its customers for this book?
17
.
One of your professional goals is to one day earn a six-figure salary ($100,000). You hope to accomplish this objective within the next 30 years. Salaries grow at 3.75% per year in your field of work. What beginning salary will you need in order to reach this 30-year goal?
18
.
How much will $25,000 grow to in five years at a 5% annual rate that is compounded quarterly?
19
.
If Eisenberg Industries revenues have increased from $30 million to $90 million over a 10-year period, what has been their annual rate of growth?
20
.
If you are scheduled to receive $4,000 six years from today and the discount rate is 8.5%, what is the present value of this payment?
21
.
If you were to open a savings account that earns 3% interest and is compounded quarterly, what would be the total amount in your account after 10 years if you made an opening deposit of $9,500?
22
.
You are considering four possible options for your new savings account. You plan to deposit $13,000 and leave this amount in the account for 20 years with no additional deposits or withdrawals. All of these account options would earn 6% interest, but each one has a different compounding frequency, listed below. What would be the value of each account at the end of the 20-year period?
- Annually
- Semiannually
- Quarterly
- Monthly