Question
1. Michelle wants to set aside funds to take an around the world cruise in four years. Michelle expects that she will need $ 22000
1. Michelle wants to set aside funds to take an around the world cruise in four years. Michelle expects that she will need $ 22000 for her dream vacation. If she is able to earn 9% per annum on an investment, how much will she need to set aside at the beginning of each year to accumulate sufficient funds?
$ 4811.
$ 31055.
$ 15585.
$ 4413.
2. Sheffield Corp. will receive $19500 today (January 1, 2020), and also on each January 1st for the next five years (2021 2025). What is the present value of the six $19500 receipts, assuming a 10% interest rate?
$84928.
$93420.
$147768.
$165500.
3. Coronado Industries makes an investment today (January 1, 2020). They will receive $22500 every December 31st for the next six years (2020 2025). If Coronado wants to earn 12% on the investment, what is the most they should invest on January 1, 2020?
$92507.
$103608.
$195090.
$204503.
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