Share
Explore BrainMass

# 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?

a. \$18,349.15
b. \$16,110.34
c. \$17,513.68
d. \$17,976.84
e. \$16,390.50

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?

a. 10.82%
b. 14.87%
c. 13.61%
d. 14.28%
e. 12.17%

#### Solution Preview

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?

We ...

#### Solution Summary

The solution explains how to determine the future value and the growth rate

\$2.19