Question
1.Your aunt offers you a choice of $21,100 in 30 years or $430 today. At a discount rate of 14 percent, how much is your
1.Your aunt offers you a choice of $21,100 in 30 years or $430 today. At a discount rate of 14 percent, how much is your aunt's offer of $21,100 worth today? (Enter your answer as a positive number rounded to 2 decimal places.)
2.If you invest $19,100 today, how much will you have in each of the following cases? Enter all answers as positive amounts.
a. In 11 years at 9 percent? (Round your final answer to 2 decimal places.) b. In 17 years at 8 percent? (Round your final answer to 2 decimal places.)
3.How much would you have to invest today to receive the following? (Enter all answers as positive numbers.)
a. $13,500 in 10 years at 11 percent. (Round your answer to 2 decimal places.) b. $17,250 in 16 years at 14 percent. (Round your answer to 2 decimal places.)
4.You have just been notified that you will receive $7,250 a year for the next 17 years from an inherited trust. If the interest rate is 9 percent, how much should you be willing to accept today in exchange for the annual payments? (Enter your answer as a positive number rounded to 2 decimal places.)
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