Question
a. The cost of a new automobile is $11,400. If the interest rate is 8%, how much would you have to set aside now to
a. The cost of a new automobile is $11,400. 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 $12,000 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.)
Present Value______
c. You have invested $108,000 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.)
Present Value_____
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