4 Exercise B-18 Practical applications of the time value of money LO P1, P2, P3, P4 a. How much would you have to deposit today if you wanted to have $42.000 in three years? Annual interest rate is 10%. (PV0f$1. FY 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.) points resent value eBook Hint b Assume that you are saving up for a trip around the world when you graduate in two years, f you can earn 6% on our investments how much would you have to deposit today to have $10.500 when you graduate? (Round your answer to 2 decimal places.) Print Present value References c-1. Calculate the future value of an investment of $499 for nine years earning an interest of 10%. (Round your answer to 2 decimal places.) uture value -2. Would you rather have $499 now or $1,000 nine years from now? ONine years from now Now 4 d. Assume that a college parking sticker today costs $62. If the cost of parking is increasing at the rate of 6% per year, how much will the college parking sticker cost in seven years? (Round your answer to 2 decimal places.) uture value 2 points eBook e. Assume that the average price of a new home is $110,000. If new homes are increasing at a rate of 8% per year, how much will a new home cost in seven years? (Round your answer to 2 decimal places.) Hint Future value Print References f. An investment will pay you $5,500 in 10 years, and it will also pay you $210 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.) resent value g. A college student is reported in the newspaper as having won $6,000,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $6.0 million now. Instead she will receive $300,000 at the end of the year for each of the next 20 years. If the annual interest rate is 7%, what is the present value (today's amount) that she won? (ignore taxes). (Round your answer to nearest whole dollar.) resent value