Deposit money today in an account

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Reference no: EM138164

(a) If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?

(b) What is the present value of a security that will pay $5,000 in 20 years if secuities of equal risk pay 7%?

(c) 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?

(d) If you deposit money today in an account that pays 6.5% annual interest, how long will it take to double your money?

(e) You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal?

Reference no: EM138164

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