# Finance Compound Interest Solutions - 91890

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## Bilbo

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Please find the solutions both  given below and attached 5 pages.

The price is \$10 which is cheap.

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SOLUTIONS

Finance Problem Solutions

PROBLEMS FUTURE VALUE if you deposit \$10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?

Future Value (after 5 years) = \$ 16,105.10

PRESENT VALUE what is the present value of a security that will pay \$5,000 in 20 years if securities of equal risk pay 7% annually?

Present Value PV=\$1,292.10

5-3 FINDING THE REQUIRED INTEREST RATE your parents will retire in 18 years. They currently have \$250,000, and they think they will need \$1,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?

The annual interest rate r = 8.006%

5-4 TIME FOR A LUMP SUM TO DOUBLE If you deposit money today in an account that pays 6.5% annual interest, how long will it take t

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