Practice Exercises

You have been saving $10 every week since you were five years old. Your parents put all of these savings into a mutual fund. Now, you are twenty-two. The mutual fund paid on average 5 percent each year. What function would you use to find out the value of the fund today? What is the value today?

You start saving for a condo that you plan to pay $80,000 for in four years. You have investments that will produce an estimated 7 percent return during the four years. How much do you need to save a year to reach your goal of $80,000?

You invested in two pre-owned cars for your business two years ago. You expect the cars to last ten years. The initial investment of both cars was about $45,000. The salvage value for the cars combined is $12,000. What is the annual depreciation for the vehicles? What is the current value to the business now?

Describe how WorldCorp might compare sales executives using Excel, QuickBooks, or both. What data will you use? How would you compare them (using what methodology, and what software)?