# Future Value of Investments

6. Calculate the future value of $2000 in 5 years at an interest rate of 5% per year.

$6,245.97

$3,221.02

$3,257.79

$2,552.56

$2,145.48

7. Calculate the future value of $2000 in 10 years at an interest rate of 5% per year.

$6,245.97

$3,221.02

$3,257.79

$2,552.56

$2,145.48

. Calculate the future value of $2000 in 5 years at an interest rate of 10% per year.

$6,245.97

$3,221.02

$3,257.79

$2,552.56

$2,145.48

10. What is the present value of $10,000 received 12 years from today when the interest rate is 4% per year?

$2,145.48

$8,879.71

$5,083.49

$2,552.56

$6,245.97

11. What is the present value of $10,000 received 20 years from today when the interest rate is 8% per year?

$2,145.48

$8,879.71

$5,083.49

$2,552.56

$6,245.97

12.What is the present value of $10,000 received 6 years from today when the interest rate is 2% per year?

$2,145.48

$8,879.71

$5,083.49

$2,552.56

$6,245.97

15. You have found three investment choices for a one-year deposit: Compute the EAR for 10% APR compounded monthly. (Assume that there are 365 days in the year.)

1.100%

$10.00

$1.09416

9.416%

10.471%

16. You have found three investment choices for a one-year deposit: Compute the EAR for 10% APR compounded annually. (Assume that there are 365 days in the year.)

1.100%

$10.00

10.000%

$9.416

10.471%

17. You have found three investment choices for a one-year deposit: Compute the EAR for 9% APR compounded daily. (Assume that there are 365 days in the year.)

1.100%

$1.09416

9.416%

$9.416

10.471%

#### Solution Summary

This solution explains:

1) How to calculate the future value of an investment based on a given interest rate.

2) How to calculate the future value of an investment based on a given interest rate and monthly, yearly, or daily compounding.