Please help! questions about money, business, banking?

1.) If you put $10 into a bank and get a 10% interest rate, What will the account be worth in 3 years?

2.) If you need $150 in 3 years how much must you deposit if toy earn !0% interest?

3.) You purchase a bond that will pay you $60 at the end of each year for 3 years. It will then return the face value of $1,000. If you can earn 5% interest, how much will you pay for it?

4.) You purchase a bond that will pay you $50 at the end of each year for 3 years. It will then return the face value of $1,000. If you can earn 6% interest, how much will you pay for it?

any help on this will be greatly apprechiated and recieve thumbs up, best answer for whoever answers the best/most

thank you!

Please help! questions about money, business, banking?finance

1. ) Assuming you don%26#039;t withdraw the interest it should be compounded annually in 3 years. $10 x (1.10^3) = $13.31

2.) To earn have $150 with an interest rate of 10%, you must deposit $112.70. If you leave that amount today in 3 years at 10% compounded you should have $150.

3.) The amount you will pay is $1,027.23. Notice the amount is larger than the face value of the bond since the prevailing interest rate is lower than what the bond is offering (6% vs. 5%) $60/$1000 x 100 = 6%.

4.) The amount you will pay is $973.27. Notice the amount is smaller than the face value of the bond since the prevailing interest rate is higher than what the bond is offering (5% vs. 6%) $50/$1000 x 100 = 5% , so you get it cheaper.

for 3.) and 4.) use the =pv function of excel or any financial calculator. you may also use the pvf table (present value factor = pvf)

Keep practicing !