12. George\'s grandmother promises to give him $1,000 at the end of cach the nex
ID: 2462068 • Letter: 1
Question
12. George's grandmother promises to give him $1,000 at the end of cach the next five years, How much is ual t the money worth today, assuming George could invest the money (Round to the nearest dollar). and earn a 6% ann A. $ 747 B. $4,212. C. $1,338 D. $5,637 E. $5,000 42121 943 13. How ow much would George have to deposit in the bank today if he will be earning a6% annual rate of return and wants to have $5,000 in the bank at the end of five years? (Round to the nearest dollr) A. $3,736 B. $4,212 C: $4,737 D $5,637 E. $5,000 5,000 8,9376 14. George's grandmother promises to give him $3,000 at the end of three years and $4,000 at the end of four years. How much is the money worth today if George could e arn6% annual interest on the funds? , A. S 5,545 B. S 5,687 C S16,237 D. $21,879 E. $ 7,000 15. Krsten deposit ss,000un hehaaktoday. She will be earning 6% interest annually onher deposit How much money wi she have in the bank at the end of 5 years? (Round to the nearest dollar). A. S 3,736 B. $ 6,691 C. $21,062 D. $28,186 E. S 5,000 2 6,634 16. Kristen deposits $5,000 in the bank at the end o or five years. How much money will she ha the bank at the end of five years, assuming she will be earning 6% interest annual yon her deposits? (R to the nearest dollar). A. S 3,736. B. S 6,691. C. $21,062 D. S28,186. E. $25,000. St 37 APPENDIx BExplanation / Answer
12 - b PV =PV(6%,5,-1000,0,0) =
13- A 3736 PV =PV(6%,5,0,5000,0) = 3736
14- b = 5687
5687.232502
15 - b 6691 fv=pv*(1+r)^n
=5000*1.06^5 = 6691
16- D= 28186
=FV(6%,5,-5000,0,0) = 28186
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