# What is the future value of \$2,944 invested for 9 years at 6.00 percent compounded annually?

What is the future value of \$2,944 invested for 9 years at 6.00 percent compounded annually?
One year ago, you invested \$3,140. Today it is worth \$3,700.50. What rate of interest did you earn?
Some time ago, Julie purchased eleven acres of land costing \$15,190. Today, that land is valued at \$59,547. How long has she owned this land if the price of the land has been increasing at 5 percent per year?

 First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually.

 If you made a \$61,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years

 Compute the future value of \$1,000 compounded annually for 20 years at 6 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

 Future value \$

 b. Compute the future value of \$1,000 compounded annually for 15 years at 9 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

 Future value \$

 c. Compute the future value of \$1,000 compounded annually for 25 years at 6 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

 Future value \$

 For each of the following, compute the present value (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):

 Present Value Years Interest Rate Future value \$ 12 6 % \$ 15,951 3 12 56,557 28 13 891,073 30 10 555,164

 Wilkinson Co. has identified an investment project with the following cash flows:

 Year Cash Flow 1 \$ 750 2 990 3 1,250 4 1,350

 If the discount rate is 7 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

 Present value \$

 If the discount rate is 18 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

 Present value \$

 If the discount rate is 24 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

 Present value \$

Four months ago, you purchased 1,400 shares of Lakeside Bank stock for \$25.44 a share. You have received dividend payments equal to \$.58 a share. Today, you sold all of your shares for \$26.44 a share. What is your total dollar return on this investment?

 Suppose a stock had an initial price of \$56 per share, paid a dividend of \$1.60 per share during the year, and had an ending share price of \$66.

 Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

 Total return %

 You’ve observed the following returns on SkyNet Data Corporation’s stock over the past five years: 18 percent, –14 percent, 20 percent, 22 percent, and 10 percent. Suppose the average inflation rate over this period was 3.1 percent, and the average T-bill rate over the period was 4.4 percent.

 a. What was the average real return on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

 Average real return %

 b. What was the average nominal risk premium on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.)  