The following situations involve the application of the time value of the money concept. Use the full factor when calculating your results. Use the appropriate present or future value table: FV of $1, PV of $1, FV of Annuity of $1, and PV of Annuity of $1 1.  Janelle Carter deposited $9,690 in the bank on January 1, 2000, at an interest rate of 10% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar. $fill in the blank 1 2.  Mike Smith deposited $20,830 in the bank on January 1, 2007. On January 2, 2017, this deposit has accumulated to $64,695. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit? Round to the nearest whole percent. fill in the blank 2 % 3.  Lee Spony made a deposit in the bank on January 1, 2010. The bank pays interest at the rate of 11% compounded annually. On January 1, 2017, the deposit has accumulated to $13,570. How much money did Lee originally deposit on January 1, 2010? Round to the nearest whole dollar.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The following situations involve the application of the time value of the money concept. Use the full factor when calculating your results.

Use the appropriate present or future value table:

FV of $1, PV of $1, FV of Annuity of $1, and PV of Annuity of $1

1.  Janelle Carter deposited $9,690 in the bank on January 1, 2000, at an interest rate of 10% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar.
$fill in the blank 1

2.  Mike Smith deposited $20,830 in the bank on January 1, 2007. On January 2, 2017, this deposit has accumulated to $64,695. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit? Round to the nearest whole percent.
fill in the blank 2 %

3.  Lee Spony made a deposit in the bank on January 1, 2010. The bank pays interest at the rate of 11% compounded annually. On January 1, 2017, the deposit has accumulated to $13,570. How much money did Lee originally deposit on January 1, 2010? Round to the nearest whole dollar.
$

4.  Nancy Holmes deposited $6,840 in the bank on January 1 a few years ago. The bank pays an interest rate of 9% compounded annually, and the deposit is now worth $14,856. How many years has the deposit been invested? Round to the nearest whole year.
=  4 years

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