CooperateFinance Chapter 4-7.docVIP

Exercises Chapter4-7 Chapter 4 ________ 1. You currently have $7,200 in your investment account. You can earn an average rate of return of 11.7 percent per year. How long will you have to wait until your account is worth $50,000? a. 9.47 years b. 11.28 years c. 14.67 years d. 17.51 years ________ 2. Your savings account is currently worth $1,200. The account pays 4.5 percent interest compounded annually. How much will your account be worth 6 years from now? a. $1,524.00 b. $1,562.71 c. $1,611.18 d. $1,627.19 ________ 3. Felix wants to have $28,000 four years from now to buy a new c