1.) If you deposit $5,000 into a bank account that pays 5% interest annually, how much will be in your account after 4 years?
2.) What is the present value of a security that will pay $50,000 in 10 years, if securities of equivalent risk pay 6% annually?
3.) You currently have saved $12,647 in a brokerage account and you plan to deposit $2,500 at the end of every year until your account totals $50,000. You expect to earn 8% annually on the account. How many years will it take you to reach your goal?
4.) You have just made your first $5,500 contribution to your retirement account. Assuming you earn a return of 10% per year and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing?
your account after 4 years?
2.) What is the present value of a security that will pay $50,000 in 10 years, if securities of equivalent risk pay 6% annually?
3.) You currently have saved $12,647 in a brokerage account and you plan to deposit $2,500 at the end of every year until your account totals $50,000. You expect to earn 8% annually on the account. How many years will it take you to reach your goal?
4.) You have just made your first $5,500 contribution to your retirement account. Assuming you earn a return of 10% per year and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing?