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N 1. You need $3,000 to buy a new stereo for your car in 3 years. What value you must have now if the compounded annually return is 10%.

N 1. You need $3,000 to buy a new stereo for your car in 3 years. What value you must have now if the compounded annually return is 10%.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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### Compound Interest Problems 1. **Future Value Calculation for a New Car Stereo** You need $3,000 to buy a new stereo for your car in 3 years. What value must you have now if the compounded annually return is 10%? 2. **Trust Fund Growth Estimate** Your grandfather placed $5,000 in a trust fund for you. In 12 years what will be the worth of the savings, if the estimated rate of return on the trust fund is 8%?
Transcribed Image Text:### Compound Interest Problems 1. **Future Value Calculation for a New Car Stereo** You need $3,000 to buy a new stereo for your car in 3 years. What value must you have now if the compounded annually return is 10%? 2. **Trust Fund Growth Estimate** Your grandfather placed $5,000 in a trust fund for you. In 12 years what will be the worth of the savings, if the estimated rate of return on the trust fund is 8%?
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