1. If a nurse deposits $1,000 today in a bank account and the interest is compounded annually at 12%, what will be the value of this investment:
a) five years from now?
b) ten years from now?
c) fifteen years from now?
d) twenty years from now?
The attached MS Excel spreadsheet contains detailed instructions for calculating the value of an investment when the applied interest is compounded,
1. Find the present value of $2000 to be received 2 years from now discounted at 3% semiannually.
2. How many years will it take to triple your money in an investment that pays 7% interest compounded quarterly?
3. What is the monthly payment on a $150,000, 30-year mortgage at a 6.5% interest rate?
4. If you borrow $2000 and pay back $2600 in 5 years, what annual interest rate are you paying?
5. If you invest $12,000 at an expected return of 4% compounded quarterly, what be the value of your investment in 6 years?View Full Posting Details