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12.(a )Your broker is offering 1.7% percent compounded daily on its money market account. If you deposit $3500 today, how much will you have in
12.(a )Your broker is offering 1.7% percent compounded daily on its money market account. If you deposit $3500 today, how much will you have in your account 17 years from now? (Do not round intermediate calculations and round your answer to 2 decimal places example 32.16)
12(B) You are considering two savings options. Both options offer a rate of return of 11.2% percent. The first option is to save $1,500, $1,500, and 3,000 at the end of each year for the next three years respectively. The other option is to save one lump sum amount today. You want to have the same balance in your savings account at the end of the three years, regardlessof the savings method you select. If you select the limp sum method, how much do you need to save today ? (Do not round intermediate calculations and round your answer to 2 decimal places example 32.16)
12(c)
Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218,000, $224,000, and 233,000 over the next three years, respectively. After that time, they feel the business will be worthless. If the desired rate of return is 10.3 percent, what is the maximum Southern Tours should pay today to acquire holiday vacations? (Do not round intermediate calculations and round your answer to 2 decimal places example 32.16)
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