3 How much money will you have in 15 years if you deposit $1,000 today followed by $100 per month in a mutual fund that provides a return of 8.5% APR? 4 5 6 Rate 7 Nper BPMT 9 PV 10 FV 11 Type 12 You received a surprise notification from an attorney that you are the beneficiary of a payout from the estate of a long lost relative. You must chose one of the following three options of how you will receive the payout. Determine the value of each option. Then indicate your preferred choice. Assume that you can invest your 14 money at 5.2% APR> 15 16 Option #1 $900 per month for 20 years beginning immediately Option #2 $3,600 per quarter for 15 years beginning in three months 17 18 Rate 19 Nper 20 PMT 21 PV 22 FV 23 Type 24 You want to buy a house in five years. You prefer to live in an area in which houses are currently selling at an average price of $450,000. You know that the average price of the houses in the area will likely increase by 1.0% per year over the next five years. 28 29 30 What will be the average price of a house in the area in five years? 31 32 Rate 33 Nper 34 PMT 35 PV 36 FV 37 Type You know that you will need to save enough money over five years to be able to have a down payment of 20% of the price of the house. You plan to deposit $2,000 immediately in an account that pays 4.5% APR compounded monthly. What will be the amount of the payment that you will need to make at the end of each 39 month to have your down payment at the end of five years. 40 41 Rate 42 Nper 43 PMT 44 PV 45 FV 46 Type