FIN 300

Chapter 8 Practice Problems 1. What is the future value of $1,000 invested today if you earn 2 percent annual interest for five years? $1,104.08 2. Calculate the future value of $20,000 ten years from now if the annual interest rate is a. 0 percent: $20,000 b. 2 percent: $24,379.89 c. 5 percent: $32,577.89 d. 10 percent: $51,874.85 3. How much will you have in 10 years if you deposit $5,000 today and earn 3 percent annual interest? $6,719.58 4. Calculate the future value of $20,000 inv...