Time Value Of Money Worksheet 1 51 To 53 Bfin 3321use Your C

Time Value Of Money Worksheet 1 51 To 53 Bfin 3321use Your Calc Time value of money worksheet # 1 (5.1 to 5.3). BFIN 3321 Use your calculator to complete the following problems. Show your work and highlight your answer. Upload your solution on blackboard. 1. Margot’s grandparents gave her $2,500 for her birthday. She opened a savings account that pays 3% annually. How much money will she have in 7 years? N= I= PV= PMT= FV= 2. Your parents will retire in 18 years. They currently have $200,000 and they think they will need $1,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don’t save any additional funds? N= I= PV= PMT= FV= 3. If you deposit $50,000 in an account that pays 5% annual interest, how long will it take to double your money? N= I= PV= PMT= FV= 4. Rebecca deposited $300 in an account that pays 6% compounded semiannually. How much money will she have in the account 5 years from now? N= I= PV= PMT= FV= 5. Jerry has $200,000 in his savings account. How much money did he deposit in the account 10 years ago if he earned 4% compounded monthly? N= I= PV= PMT= FV= 6. Amanda deposited $20,000 in an account that pays 8% annually. How long will it take her to triple the money if interest is paid every quarter? N= I= PV= PMT= FV= 7. At the end of each year you deposit $1,200 in a retirement account that pays 6%. How much money will you accumulate for your retirement if you plan to retire 40 years from now? N= I= PV= PMT= FV= 8. Starting today Andrew will deposit $750 per year in a retirement account that pays 6%. How much money will he accumulate for his retirement if he plans to retire 40 years from now? N= I= PV= PMT= FV= 9. You are looking into an investment that will pay you $5,000 per year for the next 8 years. If you require a 9% return, what is the most you would pay for this investment? N= I= PV= PMT= FV= 10. If today you pay $28,000 in exchange for an 8%, 15-year annuity, what will be the annual cash flow? N= I= PV= PMT= FV= 11. You will buy a house for $150,000. Your mortgage bank will lend you the money at 6% for 15 years. How much will you have to pay every month? N= I= PV= PMT= FV=