WorksheetsCHAPTER 2
Total questions: 10
Worksheet time: 19mins
A higher market interest rate:
Increases the future value of current money,
Increases the present value of future money,
Maintains the same present value of future money,
Decreases the future value of future money.
How much will $10,000 placed in a bank account paying 5% per year be worth compounded annually?
$11,000
$11,500
$10,500
$10,000
Find the value of $10,000 earning 5% interest per year after two years.
$10,025
$11,025
$11,005
$10,500
Find the value of $10,000 in 10 years. The investment earns 5% per year.
$16,289
$16,298
$15,289
$17,289
How much do I need to invest at 8% per year, in order to have $10,000 in One year
$4,632.26
$8,573.26
$9,529.26
$9,259.26
How much do I need to invest at 8% per year, in order to have $10,000 in Two years
$8,573
$9,259.26
$4,632
$16,289
How much do I need to invest at 8% per year, in order to have $10,000 in Ten years
$9,259.26
$8,573
$4,632
$16,289
Happy Harry has just bought a scratch lottery ticket and won €10,000. He wants to finance the future study of his newly born daughter and invests this money in a fund with a maturity of 18 years offering a promising yearly return of 6%. What is the amount available on the 18th birthday of his daughter?
€28,560.39
€28,540.39
€28,543.39
€28,534.39
Rudy will retire in 20 years. This year he wants to fund an amount of €15,000 to become available in 20 years. How much does he have to deposit into a pension plan earning 7% annually?
€3,876.29
€3,867.29
€3,786.29
€3,870.92
The future or present value of an amount depends upon:
the interest rate.
the number of periods.
number of times per year compounding occurs.
all of the above
