# FIN 370 Week 2 Lab New Tutorial/ Tutorialoutlet

## FIN 370 Week 2 Lab New Tutorial/ Tutorialoutlet

Within the financial markets there are three principal sets of player that interact.......are the one who have money to invest, including individuals accumulating money for a down payment and business that have excess cash ......... are those who need money to finance their purchases such as a business expanding its inventory.......... brings savers and borrowers together

Leslie Mosallam, who recently sold her Porsche, placed \$10,000 in a savings account paying annual compound interest of 6%.
a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 1, 5, and 15 years.
b. Suppose Leslie moves her money into an account that pays 8% or one that pays 10%. Rework part (a) using 8% and 10%.
c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you just did?
(Related to checkpoint 5.4) (present value) Sarah Wiggum like to make a single investment and have \$ 2.0 million at the time of her retirement in 35 years. she has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If srah earned an annual return of 14 percent, how soon could she then retire?
a. If Sarah can earn 4 percent annually for the next 35 years, the amount of money she will have to invest today is \$.......
b.If sarah can earn an annual return of 14 percent, the number of years until she could reire is .... years.

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How many years will it take for \$500 to grow to \$1,048.85 if it,s invested at 6 percent compounded annually?
The number of years it will take for \$500 to grow to \$1,048.85 at 6 percent annually is ...... years?

Lance Murdock purchased a wooden statue of a Conquistador for \$7,600 to put in his home office 7 years ago. Lance has recently married, and his home office is being converted into a sewing room. His new wife, who has...