| Economics |
| Time Value of Money |
| | 1 | | The Rule of 72 is an estimate for determining how long it takes your money to double. |
| | | A | Use the Rule of 72 to determine how long it will take to double $5000 at 4% annual interest? |
| | | B | Use the Rule of 72 to determine how long it will take to double $5000 at 12% annual interest? |
| | | C | At an annual rate of 5% how long before your savings double? |
| | 2 | | In 2016 the average price of cars was $22,000 and in 2020 the average price of cars is $37,000. |
| | | | Find the percent change in price between 2016 and 2020. |
| | 3 | | A family spends $48,500 a year for living expenses. If inflation increases prices by 3% a year for the next |
| | | | five years, what amount will the family need for living expenses then? |
| | 4 | A | What would be the yearly interest amount on an investment if $8000 at a quarterly rate of 2%? |
| | | B | What would be the yearly interest amount on an investment if $8000 at a semi annual rate of 2%? |
| | 5 | | If annual deposits of $2200 are made into an account earning 4.5% annual interest, how long before there |
| | | | is $24,000 in the account? |
| | 6 | | If you borrow a personal loan amount of $18,500 at 6%, to be repaid in 5 years. How much is to repaid |
| | | | including principal and interest? How much is interest? |
| | 7 | A | How much be deposited today to have $85,000 in 15 years if the interest is 5% quarterly? |
| | | B | How much be deposited today to have $85,000 in 15 years if the interest is 15% annually? |
| | 8 | | Bounced checks cost $35 each. How long before an investment of $1500 earns $35 at 2% annually? |
| | 9 | | You are planning on going to graduate school. It will take three years to complete the program. |
| | | | You need $25,000 per year for living expenses. If you earn 4% on you savings account, how much money |
| | | | needs to be deposited at the start of the graduate school program to be able to withdraw |
| | | | $25,000 a year for three years? |
| | 10 | | You deposit $1200 a month into your savings account. How long before the account reaches |
| | | | $50,000 at 2% interest compounded monthly? |
| | 11 | | How much would be in an account if you deposit $750 a month for 3 years at 3% compounded monthly? |
| | 12 | | A credit card balance s growing at 14% daily. How long before a credit card balance of $4500 grows to be $6000? |
| | 13 | | A student loan amount of $35,000 compounds at 6% daily interest for 6 years. How much interest is |
| | | | added to the loan in this time? Assume you make no payments during this time period. |
| | 14 | | You deposit $2350 a year into an account earning 3.5% annually for 40 years. |
| | | | What is the future value? | | | How much is interest? |
| | 15 | | Find the future value of $4500 at 7% daily for 6 years. How much is interest? |