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
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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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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