2 points 1 Check my work Mike Derr Company expects to earn 8% per year on an investment that will pay $606,000 nine years from now. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Compute the present value of this investment. Future Value Table Factor eBook X = Hint References Present Value 2 2 points eBook Hint References Check my work Tom Thompson expects to invest $23,000 at 8% and, at the end of a certain period, receive $78,796. How many years will it be before Thompson receives the payment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value Present Value Table Factor Years $ 78,796 $ 23,000 = years 3 2 points eBook Hint References Check my work Jones expects an immediate investment of $36,867.60 to return $6,000 annually for ten years, with the first payment to be received one year from now. What rate of interest must Jones earn? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Present Value Annuity Payment Table Factor Interest Rate % 4 points Check my wor Dave Krug finances a new automobile by paying $7,400 cash and agreeing to make 20 monthly payments of $450 each, the first payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the automobile? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Monthly Payment eBook Hint Table Values are Based on: References n = = Present Value of Loan Present Value of Table Factor Loan Cash Down Payment = Cost of the Automobile Check my work 5 12 points eBook Hint References Provided are links to the present and future value tables: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) a. How much would you have to deposit today if you wanted to have $54,000 in five years? Annual interest rate is 8%. b. Assume that you are saving up for a trip around the world when you graduate in two years. If you can earn 7% on your investments, how much would you have to deposit today to have $14,500 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an investment of $643 for eight years earning an interest of 12%. (Round your answer to 2 decimal places.) c-2. Would you rather have $643 now or $1,000 eight years from now? d. Assume that a college parking sticker today costs $78. If the cost of parking is increasing at the rate of 4% per year, how much will the college parking sticker cost in nine years? (Round your answer to 2 decimal places.) e. Assume that the average price of a new home is $122,000. If the cost of a new home is increasing at a rate of 9% per year, how much will a new home cost in nine years? (Round your answer to 2 decimal places.) f. An investment will pay you $9,500 in 10 years, and it will also pay you $290 at the end of each of the next 10 years (years 1 thru 10). If the annual interest rate is 6%, how much would you be willing to pay today for this type of investment? (Round your intermediate calculations and final answer to the nearest whole dollar.) g. A college student is reported in the newspaper as having won $10,000,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $10 million now. Instead she will receive $500,000 at the end of the year for each of the next 20 years. If the annual interest rate is 5%, what is the present value (today's amount') that she won? (ignore taxes). (Round your answer to nearest whole dollar.) Mc Check my work 12 5 points me ammudi interest rate IS 0%, HOW MUCH Would you be willing to pay loudy For Is type of investment? (Rounu your intermediate calculations and final answer to the nearest whole dollar.) g. A college student is reported in the newspaper as having won $10,000,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $10 million now. Instead she will receive $500,000 at the end of the year for each of the next 20 years. If the annual interest rate is 5%, what is the present value (today's amount') that she won? (ignore taxes). (Round your answer to nearest whole dollar.) eBook a. Present value b. Present value Hint c-1. Future value References c-2. Would you rather have $643 now or $1,000 eight years from now? d. Future value e. Future value f. Present value g. Present value