Calculating the Number of Periods Solve for the unknown number of years in each of the following: Present Value Years Interest Rate $ 610 940 26,350 43,500 7% 8 9 11 Future Value $ 1,389 1,821 289,715 430,258 Calculating Future Values You have just made your first $5,500 contribution to your individual retirement account. Assuming you earn an annual rate of return of 10 percent and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing? (Does this suggest an investment strategy?)

Calculating the Number of Periods Solve for the unknown number of years in each of the following: Present Value Years Interest Rate $ 610 940 26,350 43,500 7% 8 9 11 Future Value $ 1,389 1,821 289,715 430,258 Calculating Future Values You have just made your first $5,500 contribution to your individual retirement account. Assuming you earn an annual rate of return of 10 percent and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing? (Does this suggest an investment strategy?)

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter2: Using Financial Statements And Budgets

Section: Chapter Questions

Problem 5FPE

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