Question

If you invest $16,000 today, how much will you have: (Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.)

a. in 9 years at 8 percent?

Future value           $

b. in 20 years at 11 percent?

Future value           $

c. in 18 years at 14 percent?

Future value           $

d. in 10 years at 14 percent (compounded semiannually)?

Future value           $

Answer 1

a.

Calculating Future Value,

using TVM Calculation,

FV = [PV = 16,000, PMT = 0, N = 9, I = 0.08]

FV = $31,984.07

b.

Calculating Future Value,

using TVM Calculation,

FV = [PV = 16,000, PMT = 0, N = 20, I = 0.11]

FV = $128,996.98

c.

Calculating Future Value,

using TVM Calculation,

FV = [PV = 16,000, PMT = 0, N = 18, I = 0.14]

FV = $169,202.71

d.

Calculating Future Value,

using TVM Calculation,

FV = [PV = 16,000, PMT = 0, N = 20, I = 0.07]

FV = $61,914.95