a 45. 45. Suppose Crash Bandicoot deposits $75,000 into an account earning 11.4 percent interest, compounded monthly and Crash also makes monthly deposits of $2500 (first monthly contribution made one month after the initial deposit is made) into this account. How many years (rounded to one decimal place for example, 32.1843 year = 32.2) will it take for the account to grow to S1,000,000? 46. What is the future value at the end of year 34 of depositing $3,500 today, $5,000 at the end of years 1, 2 and 3, $6,000 at the end of years 4, 5, 6 and 7 and $12,000 at the end of years 8, 9, 10, 11 and 12 into an account that pays 4.15% p.a.? (No deposits will be made into the account after year 12). 47. If Lisa Hamilton wants to fund a scholarship that would pay $13,500 per year forever at GSU, how much would Lisa have to deposit today if she wanted the scholarship to start paying six (6) years from today? Assume the endowment could earn 6.25% p.a. interest forever. 48. Vito Scaletta just bought his dream car, a 2022 Bugatti Divo, that cost $6,005,320. He paid $605,320 down and financed the balance over 72 months at 5.55% p.a. If Vito makes all required payments on time, what is the total amount of interest that Vito will pay over the entire term of the loan (that is, the total amount of interest that is paid on payments 1 through 72)? 49. Daigo Dojima recently invested $6500 in a project that is promising to return 3.785 percent per year. The cash flows are expected to be as follows: End of Cash Year Flow 1 $1000 2 950 3 875 ??? 5 850 Note that the 4th year cash flow is unknown. Assuming the present value of this cash flow stream is S6500 (that is, CFO = -6500), what is the missing cash flow value (that is, what is the cash flow at the end of the year)? 50. Last week, Bayonetta opened a new wealth management account at the Capital Bank of Noatun to begin saving for retirement. Today, Bayonetta deposited $135,000 into her account. She then plans to make equal deposits into the account every month for the next 18 years (thus, Bayonetta will make a total of 216 equal deposits into her account with the first deposit to be made exactly one month from today). Exactly one month after her last deposit is made into the account, Bayonetta wants to withdraw $35,000 per month from the account for a total of 15 years (i.e., a total of 180 withdrawals). If Bayonetta believes she will earn 9.75% p.a. with monthly compounding on her account over the entire deposit and withdrawal period, what is the minimum amount that she must deposit every month during the deposit phase (i.e., for months 1 to 216) to achieve her withdrawal goal? 4
