# In determining the future value of a single amount, one meas

Please look over these questions for me and let know which one is wrong and show work. SEE ATTACHMENT

1. In determining the future value of a single amount, one measures

A. the future value of periodic payments at a given interest rate.

B. the present value of an amount discounted at a given interest rate.

C. the future value of an amount allowed to grow at a given interest rate.

D. the present value of periodic payments at a given interest rate.

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Correction made in blue.

1. In determining the future value of a single amount, one measures

A. the future value of periodic payments at a given interest rate.

B. the present value of an amount discounted at a given interest rate.

C. the future value of an amount allowed to grow at a given interest rate.

D. the present value of periodic payments at a given interest rate.

2. How much must you invest at 10% interest in order to see your investment grow to $5,000 in 5 years?

A. $3,070

B. $3,415

C. $3,105

D. $none of the above

FV = PV (1+i)n where PV is the present value

FV is the future value

i is the interest rate

n is the period

5,000 = PV(1 + 0.10)5

PV = 3,105

3. You are to receive $12,000 at the end of 5 years. The available yield on investments is 6%. Which table would you use to determine the value of that sum today?

A. Present value of an annuity of $1

B. Future value of an annuity

C. Present value of $1

D. Future value of $1

4. If you were to put $1,000 in the bank at 6% interest each year for the next ten years, which table would you use to find the ending balance in your account?

A. Present value of $1

B. Future value of $1

C. Present value of an annuity of $1

D. Future value of an annuity of $1

5. Mr. Blochirt is creating a college investment fund for his daughter. He will put in $850 per year for the next 15 years and expects to earn a 8% annual rate of return. How much money will his daughter have when she starts college?

A. $11,250

B. $12,263

C. $24,003

D. $23,079

FVA = W x (1 + i)n - 1 where FVA is the future value

i W is the amount required to deposit i is the interest rate

n is the period

FVA = 850 x (1 + 0.08)15 - 1

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