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7. Your parents give S1000 gift today. In addition, your CD will mature in one year and you will receive $2000. You sister has promised
7. Your parents give S1000 gift today. In addition, your CD will mature in one year and you will receive $2000. You sister has promised to repay the $3000 she borrowed from you, in two years from today. You plan on investing all this money. If you can earn an average of 9 % percent on your investments, how much would your account be worth in approximately 14 years.? 8. Assume that a mutual fund manager has invested in an aggressive fund and expects to hold on to the investment for the next five years. The first year's dividend is expected to be $10,000 and is expected to appreciate by 8% each year. Each payment occurs at the end of the year. What is the present value of the estimated income stream over the first 5 years if the discount rate is 12%
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