Answered step by step
Verified Expert Solution
Question
1 Approved Answer
a Find the future value of the following. Which of the following will result in a future value of greater than $200? (3 points) a.
a Find the future value of the following. Which of the following will result in a future value of greater than $200? (3 points) a. PV = $100, r= annual interest rate of 9%, and n=9 years b. PV = $125, r = annual interest rate of 11%, and n= 5 years c. PV = $150, r = annual interest rate of 18%, and n= - 1 year Approximately how long will it take to double your money if you get i) 3.6% or ii) 9.5% annual return on your investment? What are the exact answers using a financial calculator to solve it? (4 points) Kevin, age 21, wants to be able to buy a really cool new car when he turns 25. His really cool car costs $32,000 today, and its cost is expected to increase 1.85 percent annually. Kevin wants to make one deposit today into an account paying 5.7 percent annually in order to buy his car in 4 year. a) How much will Kevin's car cost? and b) how much does Kevin have to save today in order to buy this car at age 25? (4 points)
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