Calculating PV and FV using Online Calculators I need someone whom is great at math. Thanks!
Module 06 Questions/Problems - Calculating PV and FV using Online Calculators
1. If a nurse deposits $25,000 today in a mutual fund that is expected to grow at an annual rate of 8%, what will be the value of the investment :
a. 3 years from now?
b. 6 years from now?
c. 9 years from now?
d. 12 years from now?
If the rate changed to 10%, what would be the value of the investment:
e. 3 years from now?
f. 6 years from now?
g. 9 years from now?
h. 12 years from now?
i. How do the values compare in 12 years with the different interest rates?
2. The chief financial officer of a home health agency needs to determine the present value of a $120,000 investment received at the end of year 5. What is the present value if the discount rate is:
a. 3%
b. 6%
c. 9%
d. 12%
3. An obstetrician plans to invest $25,000 per year at the end of each year into a low-risk retirement account. She expects to earn 5% for 35 years. What will her retirement account be worth at the end of those 35 years assuming she invests $25,000 right away (rather than waiting until the end of the year)?