The following situations involve the application of the time value of money concept.
1. Janelle Carter deposited $9,750 in the bank on January 1, 1991, at an interest rate of 11% compounded annually. How much has accumulated in the account by January 1, 2008?
2. Mike Smith deposited $21,600 in the bank on January 1, 1998. On January 2, 2008, this deposit has accumulated to $42,487. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit?
3. Lee Spony made a deposit in the bank on January 1, 2001. The bank pays interest at a rate of 8% compounded annually. On January 1, 2008, the deposit has accumulated to $15,000. How much money did Lee originally deposit on January1, 2001?
4. Nancy Holmes deposited $5,800 in the bank on January 1 a few years ago.. The bank pays an interest of 10% compounded annually, and the deposit is now worth $15,026. How years has the deposit been invested?

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Time Value of Money:
Calculate - 1. Future Value; 2. Present Value; 3. ...

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The following situations involve the application of the time value of money concept.
1. Janelle Carter deposited $9,750 in the bank on January 1, 1991, at an interest rate of 11% compounded annually. How much has accumulated in the account by January 1, 2008?
2. Mike Smith deposited $21,600 in the bank on January 1, 1998. On January 2, 2008, this deposit has accumulated to $42,487. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit?
3. Lee Spony made a deposit in the bank on January 1, 2001. The bank pays interest at a rate of 8% compounded annually. On January 1, 2008, the deposit has accumulated to $15,000. How much money did Lee originally deposit on January1, 2001?
4. Nancy Holmes deposited $5,800 in the bank on January 1 a few years ago.. The bank pays an interest of 10% compounded annually, and the deposit is now worth $15,026. How years has the deposit been invested?

a) You earn interest of 10% per year, how much will you have at the end of 20 years?
N=20
I=10
Pv=0, fv=?
Pmt = 100
b) How much must you invest each year if you want to have 50,000 at the end of 20 years?
n-20
i= 10
fv=50,000
pmt= ?
pv= 0.

1. Calculate the value of a 10-year Treasury STRIP if the Treasury 10-year spot rate is 6-1/8%.
2. Calculate the value of the Treasury STRIP in Problem #1 five years from now with the following expected Treasury spot rate curve:
6-month 6-7/8%
2-year 7-1/8%
5-year 7-3/8%
10-year 7-3/4%

7. Sara Shouppe has invested $100,000 in an account at her local bank. The bank will pay her a constant amount each year for 6 years, starting one year from today, and the account's balance will be 0 at the end of the sixth year. If the bank has promised Ms. Shouppe a 10% return, how much will they have to pay him each year?

1. Calculate the difference between daily and annual compounding, given the following information: (a) PV: $52,000, (b) NPER: 30, and (c) RATE: 10%.
2. Calculate the PMT on a mortgage, given the following information: (a) PV: $439,000, (b) RATE: 4%, and NPER: 30.
3. Calculate the present value of a lump sum payment with the

The Wintergreens are planning ahead for their son's education. He's eight now and will start college in 10 years. How much will they have to set aside each year to have $65000 when he starts if the interest rate is 7%?

Morgan Jennings, a geography professor, invests $50,000 in a parcel of land that is expected to increase in value by 12% per year for the next five years. He will take the proceeds and provide himself with a 10 year annuity. Assuming a 12% interest rate, how much will this annuity be?

Using a calculator can you show me step by step how I can calculate a monthly mortgage payment.
For example the mortgage is $120K, the rate is 4.5% and the term is 360 months.
Further suppose I decide to pay off the mortgage at year 5, what would the amount owed be?
I have read the book and see the formula, I can calcul

3. Another client, Wynona, decides that she will invest $5,000 per year in a 6% annuity for the first ten years, then $6,000 for the next ten years, and then $4,000 per year for the last ten years, how much will she accumulate?
[Hint: Treat each ten-year period as as separate annuity and compute the Future Value. After the

The Kellys are planning for a retirement home. They estimate they will need $200,000 4 years from now to purchase this home. Assuming an interest rate of 10%, what amount must be deposited at the end of each of the 4 years to fund the home price? (Round to two decimal places.)

Modify the Mortgage Calculator Design to calculate and display the payment amount for each of three loans:
a 7 year at 5.35%
b 15 year at 5.5%
c 30 year at 5.75%
The program does not need to print an amortization table for the loans, just the payment amount. The payment amount needs to be two decimal points. The loan data