47. (Appendix 1) Use the tables in Appendix A to determine the answers to the following questions.

a. Elijah Santos wishes to have $50,000 in six years. He can make an investment today that will earn 8 percent each year, compounded annually. What amount of investment should he make to achieve his goal (ignore tax)?

b. Frederick Frazier is going to receive $200,000 on his 50th birthday, 15 years from today. Frederick has the opportunity to invest money today in a government-backed security paying 8 percent, compounded semiannually.

How much would he be willing to receive today instead of the $200,000 in 15 years (ignore tax)?

c. Marshall Dillon has $60,000 today that he intends to use as a down payment on a house. How much money did Marshall invest 10 years ago to have $60,000 now, if his investment earned 11 percent compounded annually

(ignore tax)?

d. Pat Sawhack is the host of a television game show that gives away thousands of dollars each day. One prize on the show is an annuity, paid to the winner, in equal installments of $210,000 at the end of each year for the next five years. If the winner has an investment opportunity to earn 8 percent, semiannually, what present amount would the winner take in exchange for the annuity (ignore tax)?

e. Ginger is going to be paid modeling fees for the next 10 years as follows:

year 1, $30,000; year 2, $50,000; year 3, $60,000; years 4–8, $100,000; year 9, $70,000; and year 10, $45,000. Ginger can invest her money at 8 percent, compounded annually. What is the present value of her future modeling fees (ignore tax)?

f. Your friend has just won the lottery. The lottery will pay her $200,000 per year for the next five years. If this is the only asset owned by your friend, is she a millionaire (one who has a net worth of $1,000,000 or more)? Explain

(ignore tax).