Question

1. If you deposit $350 in an account today at 6% annual interest rate, 6 years from today you will have ______ in your account.

a. $496.48
b. $ 2,226.00
c. $371.00
d. $386.00

2. How much do you need to deposit in your account today if you want to have $12,000 accumulated in your account in 5 years. assume 7% interest rate?
a. $2,400.00
b. $8,528.18
c. $8,555.83
d. $16,830.62

3. We can omit the negative sign when inputting present and future values into a financial calculator, the calculator will still be able to solve the problem
a. true
b. false

4. When entry will go into financial calculator under the "I" key if the relevant annual interest rate is 4.5?
a. 450
b. 0.45
c.0.045
d. 4.5

Answer 1

Dear student, only one question is allowed at a time. I am answering the first question

1)

Future value

= Present value x (1 + r) ^ n

Where,

Present value = $350

r = Rate of interest = 6% or 0.06

n = Years = 6

So, Future value

= $350 x (1.06^6)

= $350 x 1.418519

= $ 496.48

So, as per above calculations, option a is the correct option