# A Max, Inc. Deposited $2,000 In A Bank Account That Pays 12% Interest Annually.

1. A Max, Inc. deposited $2,000 in a bank account that pays 12% interest annually. How many periods would it take for the deposit to grow to $6,798 if the interest is compounded semiannually?2. You have $1,000 today and want to double your money in 8 years. What interest rate must you earn?3. If you can double your money in 24 years, what is the implied rate of interest? Note: Do not put % sign in your answer. 4. How many years it will take you to quadruple (means 4 times) your money if you can earn 13. 95% each year?5. Jones wants to buy a one-way bus ticket to Mule-Snort, Pennsylvania. The ticket costs $142, but Mr. Jones has only $80. If Shorty puts the money in an account that pays 9% interest compounded monthly, how many months must Shorty wait until he has $142 (round to the nearest month)?6. How much do you need to invest today in order to have $12,935 at the end of 21 years if you are sure to earn an interest at the rate of 9%? Note: Do not put $ sign in your answer7. What is the future value of $4,195 invested for 14 years at 13% if interest is compounded semi-annually (twice a year)? Note: Do not put $ sign in your answer. 8. If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth in 21 months (round to the nearest dollar)?9. What is the future value of $4,341 invested for 12 years at 12%? Note: Do not put $ sign in your answer. 10. How much do you need to invest today in order to have $1,491 at the end of 27 years if you are sure to earn an interest at the rate of 7%, if interest is compounded quarterly? Note: Do not put $ sign11. You are planning a large wedding 4 years from today when your fiancé finishes medical school. You have estimated that you will need $45,000 for this affair. You can earn 3. 5 percent compounded annually on your savings. How much would you have to deposit today in one lump sum to pay for the entire wedding?12. How many years it will take to grow your money from $4,569 to $6,111 if you can earn an interest of 8% compounded monthly? Note: Do not write “years” in your answer. Simply write the number in the answer box. 13. What is the future value of $121,900 invested at 10 percent, compounded semi-annually for 25 years?14. How much do you need to invest today in order to have $3,140 at the end of 24 years if you are sure to earn an interest at the rate of 12%? Note: Do not put $ sign in your answer. Simply write the number in the answer box. 15. You just purchased a parcel of land for $10,000. If you expect a 12% annual rate of return on your investment, how much will you sell the land for in 10 years?16. How many years it will take to grow your money from $3,566 to $8,882 if you can earn an interest of 11% compounded quarterly? Note: Do not write “years” in your answer. Simply write the number in the answer box. 17. If you can triple your money in 28 years, what is the implied rate of interest? Note: Do not put % sign in your answer. Simply write the number in percentages18. At 8% compounded annually, how long will it take $750 to double?19. Your grandfather spent $2,000 to buy 200 shares of stock in a new company 60 years ago. The stock has appreciated 9 percent per year on average. What is the current value of these 200 shares?20. If you can double your money in 21 years, what is the implied annual rate of interest, given that compounded in quarterly? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages21. If you can double your money in 23 years, what is the implied annual rate of interest, given that compounded semi-annually? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages22. How many months it will take to grow your money from $3,769 to $7,149 if you can earn an interest of 7% compounded monthly? Note: Do not write “months” in your answer. 23. What is the future value of $1,670 invested for 26 years at 17% if interest is compounded semi-annually? Note: Do not put $ sign in your answer. Simply write the number in the answer box. 24. Say, you deposit $4,346 in a bank for 18 years. What is the amount you will have in the bank at the end of 18 years if interest of 4 % for first 9 years and interest of 6 % for the remaining years? Note: Do not put $ sign in your answer. 25. How many years it will take you to double your money if you can earn 14% each year, given that compounding is quarterly? Note: Do not write “years” in your answer. 26. Today, you are investing $25,000 at 6%, compounded monthly, for 10 years. How much additional income could you earn if you could have invested this amount at 7%, compounded monthly?27. Say, you deposit $3,710 in a bank for 19 years. What is the amount you will have in the bank at the end of 19 years if interest of 7 % compounded monthly for first 6 years and interest of 7 % compounded quarterly for the remaining years? Note: Do not put $ sign in your answer. 28. What is the future value of $2,348 invested for 15 years at 13% if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box. 29. A Max, Inc. deposited $2,000 in a bank account that pays 12% interest annually. What will the dollar amount be in four years?30. How many years it will take you to triple your money if you can earn 14% each year?31. Say, you are investing $25,000 at 6 percent, compounded monthly, for 10 years. How much additional income could you earn if you could have invested this amount at 7 percent, compounded monthly?32. How much do you need to invest today in order to have $6,335 at the end of 29 years if you are sure to earn an interest at the rate of 6%, if interest is compounded twice a year? Note: Do not put $ sign in your answer. 33. How many years it will take you to triple your money if you can earn 17% each year, given that compounding is monthly? Note: Do not write “years” in your answer. Simply write the number in the answer box. 34. A Max, Inc. deposited $2,000 in a bank account that pays 12% interest annually. What will the dollar amount be if the interest is compounded semiannually for those four years?35. What is the implied annual rate if you deposit $2,367 and receive $8,450 in 6 years, assuming interest is compounded quarterly? Note: Do not put % sign in your answer. Simply write the number in percentages36. What is the future value of $232 invested for 17 years at 9%? Note: Do not put $ sign in your answer. How much do you need to invest today in order to have $1,829 at the end of 7 years if you are sure to earn an interest at the rate of 14%, if interest is compounded monthly? Note: Do not put $ sign in your answer.