Colorado State University FIN 300 Exam 3

Chapter 8 Practice Problems 1. What is the future value of $1,000 invested today if you earn 2 percent annual interest for five years? $1,104.08 2. Calculate the future value of $20,000 ten years from now if the annual interest rate is a. 0 percent: $20,000 b. 2 percent: $24,379.89 c. 5 percent: $32,577.89 d. 10 percent: $51,874.85 3. How much will you have in 10 years if you deposit $5,000 today and earn 3 percent annual interest? $6,719.58 4. Calculate the future value of $20,000 invested today fifteen years from now based on the following annual interest rates: a. 3 percent: $31,159.35 b. 6 percent: $47,931.16 c. 9 percent: $72,849.65 d. 12 percent: $109,471.32 5. Calculate the future values of the following amounts at 4% for twenty years: a. $50,000: $109,556.16 b. $75,000: $164,334.24 c. $100,000: $219,112.31 d. $125,000: $273,890.39 6. Calculate the future value of $40,000 at 5% for the following years: