Time Value of Money - Illustrations

1. MARY WANTS TO TRAVEL TO FRANCE FOUR YEARS FROM NOW. SHE WILL NEED $5,000 TO GO TO FRANCE AT THAT TIME. IF MARY CAN EARN 9 PERCENT ON HER SAVINGS, HOW MUCH MONEY MUST SHE PLACE IN HER SAVINGS ACCOUNT TODAY?

2. MARY WANTS TO TRAVEL TO FRANCE FOUR YEARS FROM NOW. MARY HAS PLACED $3,542 IN HER SAVINGS ACCOUNT TODAY. IF SHE EARNS 9 PERCENT ON HER SAVINGS, HOW MUCH MONEY WILL MARY HAVE TO TRAVEL ON WHEN SHE GOES TO FRANCE?

3. MARY WANTS TO TRAVEL TO FRANCE FOUR YEARS FROM NOW. SHE HAS $3,542 TO PLACE AT INTEREST. SHE WILL NEED $5,000 TO TRAVEL IN FOUR YEARS. WHAT INTEREST RATE WILL MARY HAVE TO EARN IN ORDER TO BE ABLE TO DO SO?

4. MARY WANTS TO TRAVEL TO FRANCE. SHE HAS PLACED $3,542 IN A SAVINGS ACCOUNT EARNING 9 PERCENT INTEREST. SHE WILL NEED $5,000 TO TRAVEL. HOW LONG WILL MARY HAVE TO WAIT TO GO TO FRANCE?

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