You invest 5,000 today at an annual interest rate of 6.35, how ...

[EY67]

you invest 5,000 today at an annual interest rate of 6.35, how much money will you have for your daughter's college education in 18 years?
 
  A) 5,603
  B) 10,000
  C) 15,144
  D) There is not enough information to answer this question.

Question 2

You need 32,000 at the end of 6 years. If you can earn 0.625 per month, how much would you need to invest today to meet your objective?
 
  A) 17,600
  B) 18,319
  C) 20,735
  D) 20,433

[jonathanballen97]

Answer to Question 1

Answer: C
Explanation: C) FV = PV  (1 + r)n = 5,000  (1.0635)18 = 15,144.15
MODE = END
INPUT 18 6.35 -5,000 0 ?
KEY N I/Y PV PMT FV
CPT 15,144.15

Answer to Question 2

Answer: D
Explanation: D) PV = = = 20,432.70
MODE = END
INPUT 72 .625 ? 0 -32,000
KEY N I/Y PV MT FV
CPT 20,432.70