Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. How much would you have to deposit today if you wanted to have $46,000 in three years? Annual interest rate is ,0% of of

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

a. How much would you have to deposit today if you wanted to have $46,000 in three years? Annual interest rate is ,0% of 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.) resent value b. Assume that you are saving up for a trip around the world when you graduate in three years. If you can earn 6% on your nvestments, how much would you have to deposit today to have $12,000 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an investment of $558 for nine years earning an interest of 10%. (Round your answer to 2 decimal places.) uture value c-2. Would you rather have $558 now or $1,000 nine years from now? Nine years from now O Now d. Assume that a college parking sticker today costs $68. 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 e. Assume that the average price of a new home is $114,500. 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.) ture value f. An investment will pay you $7,000 in 9 years, and it will also pay you $240 at the end of each of the next 9 years (years 1 thru 9). If the annual interest rate is 5%, how much would you be willing to pay today for this type of investment? (Round your Intermediate calculatlons and final answer to the nearest whole dollar.) Present value g. A college student is reported in the newspaper as having won $7,500,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $7.5 million now. Instead she will receive $375,000 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 t o nearest whole dollar) Present value

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quality Auditor Guide Theory And Application Made Easy

Authors: Warren Alford

1st Edition

1453899774, 978-1453899779

More Books

Students also viewed these Accounting questions