Future Value and Growth Rate
NOTE: if can be perforned with TI83 Finance (TVM Solver) please provide key strokes steps.
1.) You want to go to grad school 3 years from now, and you can save $5,000 per year, beginning one year from today. You plan to deposit the funds in a mutual fund which you expect to return 9% per year. Under these conditions, how much will you have just after you make the 3rd deposit, 3 years from now?
2.) Sims Inc. earned $1.00 per share in 2000. Five years later in 2005, it earned $2.00. What was the growth rate in Sims' earnings per share (EPS) over the 5-year period?
The solution explains how to determine the future value and the growth rate
This answer includes:
- Plain text
- Cited sources when necessary