1. You want to set aside 5% of your income from your bi-weekly paycheck and watch it grow. If you wanted to know how much money that would be worth in 5 years, would you use present or future value? 2. What is the present value of $792 four years from now using a 3% discount rate? 3. What is the future value of $500 in 35 years if you receive an 8% rate of return?

1. You want to set aside 5% of your income from your bi-weekly paycheck and watch it grow. If you wanted to know how much money that would be worth in 5 years, would you use present or future value? 2. What is the present value of $792 four years from now using a 3% discount rate? 3. What is the future value of $500 in 35 years if you receive an 8% rate of return?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

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

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

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...

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