Answered step by step
Verified Expert Solution
Question
1 Approved Answer
7. Present Value Questions. Use the present and future value tables in Appendix C to answer the following questions. a. How much will $15,000 invested
7. Present Value Questions. Use the present and future value tables in Appendix C to answer the following questions. a. How much will $15,000 invested at 4% be worth in 4 years? b. If you invest $10,000 per year and earn an average of 14% interest, how much will you have in 20 years? c. How much should you invest today to have a total of $100,000 in ten years if you can earn 12% interest? d. Assume you are 22 years old and you want to retire in 40 years with $5,000,000. How much should you save each year to accumulate that amount assuming an interest rate of 12%? e. Assume you have been given $200,000 by your wealthy uncle. If you invest it at 10% for 20 years, how much will the investment be worth? f. Which would you rather have assuming you can earn 8% interest? Show computations. a. $30,000 in 2 years? b. $50,000 in 5 years? c. $79,000 in 9 years
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started