a. The cost of a new automobile is $10,800. If the interest rate is 8%, how much would you have to set aside now to provide this sum in eight years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ b. You have to pay $10,000 a year in school fees at the end of each of the next nine years. If the interest rate is 11%, how much do you need to set aside today to cover these bills? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Amount needed $ c. You have invested $90,000 at 11%. After paying the above school fees, how much would remain at the end of the nine years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Amount remaining $ rev: 02_22_2014_QC_44805 The continuously compounded interest rate is 10%. a. You invest $1,050 at this rate. What is the investment worth after ten years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Future value $ b. What is the PV of $5.5 million to be received in thirteen years? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) Present value $ million c. What is the PV of a continuous stream of cash flows, amounting to $2,050 per year, starting immediately and continuing for 20 years? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Present value $ Mike Polanski is 30 years of age and his salary next year will be $41,400. Mike forecasts that his salary will increase at a steady rate of 5% per annum until his retirement at age 60. a. If the discount rate is 10.5%, what is the PV of these future salary payments? (Do not round intermediate calculations.Round your answer to 2 decimal places.) Present value $ b. If Mike saves 5% of his salary each year and invests these savings at an interest rate of 10.5%, how much will he have saved by age 60? (Do not round intermediate calculations.Round your answer to 2 decimal places.) Future value $ c. If Mike plans to spend these accumulated savings in even amounts each year over the subsequent 20 years, how much can he spend each year starting with his 61st birthday? (Do not round intermediate calculations.Round your answer to 2 decimal places.) Present value $ 8 A leasing contract calls for an immediate payment of $116,000 and nine subsequent $116,000 semiannual payments at six-month intervals. What is the PV of these payments if the annual discount rate (i.e. EAR) is 9%? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Present value $ 9 Kangaroo Autos is offering free credit on a new $15,000 car. You pay $300 down and then $490 a month for the next 30 months. Turtle Motors next door does not offer free credit but will give you $1,140 off the list price. a. If the rate of interest is 10% a year (about 0.8333% a month), calculate the present value of the payments to Kangaroo Autos. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $