PAF 9140: FINKLER CHAPTER 5: ASSIGNMENT 3 DUE: APRIL 5, 2016

USE EXCEL SPREADSHEET SET UP

5-14. How much will $20,000 invested today at 3% interest be worth in 5 years if it is compounded Annually? Monthly?

5-15. If we receive $5,000 eight years from now, how much is that equivalent to today, if we believe that we can earn 5% on other opportunities?

5-16. If you have $8,500 today, and you could earn 3% interest per year, how many years would it be before you would accumulate $10,000 (assume annual compounding)?

5-17. How much must you put into a 5% investment annually to have $75,000 eight years from now? Assume all payments are made the end of each period.

5-18. If you could put $5,000 into a 6% investment at the end of each year, how much money could you take out at the end of 7 years?