Econ 4 question bank

What is the value today of a money machine which gives us $5000 per year for one year? The annual growth rate is 4%.

$4807.69

You invest $1 today with an annual interest rate of 3%. How much will you have after one year? After 3 years? After 30 years?

one year is $1.03; after 3 years is $1.09; After 30 years is $2.43

What is the value today of a money machine which gives us $800 per year for five years? The annual growth rate 6%.

$3369.36

What is the value of a money machine that gives $1000 per year for three assuming r=14%

$2321.63

Harry invests $10,000 in a fund with a maturity of 18 years offering 6% return. What is the amount available in 18 years?

Approximately $28,540

Rudy will retire in 20 years. This year he wants to fund an amount of $15,000 to become available in 20 years. How much does he have to deposit into a pension earning 7% annually?

approximately $3,876

What is the value today of a money machine which gives us $3,000 per year for four years? When r = 8%, r = 10%, or r = 12%?

$9935.93, $9508.82, $9112.38