Answer each of the following independent questions. Ignore personal income taxes. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required 1 Suppose you invest $4.000 in an account bearing interest at the rate of 20 percent per year. What will be the future value of your investment in five years? 2. Your best friend won the state lottery and has offered to give you $11,500 in six years, after he has made his first million dollars. You figure that if you had the money today, you could invest it at 14 percent annual interest. What is the present value of your friend's future gift? 3. In four years, you would like to buy a small cabin in the mountains. You estimate that the property will cost you $67,500 when you are ready to buy. How much money would you need to invest each year in an account bearing interest at the rate of 6 percent per year in order to accumulate the $67,500 purchase price? 4. You have estimated that your al expenses over the next four years will be $14,500 per year. How much money do you need in your account now in order to withdraw the required amount each year? Your account bears interest at 10 percent per year. Complete this question by entering your answers in the tabs below Suppose you invest $4,000 in an account bearing interest at the rate of 20 percent per year. What will be the future value of your in five years? (Round your answer to 2 l places.) ta e Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) 2. Your best friend won the state lottery and has offered to give you $11,500 in six years, after he has made his first milion dollars. You figure that if you had the money today, you could invest it at 14 percent annual interest. What is the present value of your friend's yer narder to accmiate te0ab trercemt per over the next four years will be $14500 per year How much money do you value of your friend's future gift? (Round your answer to 2 decimal places.) Answer each of the following independent questions. Ignore personal income taxes. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required 1. Suppose you invest $4,000 in an account bearing interest at the rate of 20 percent per year. What will be the future value of your investment in five years? 2 Your best friend won the state lottery and has offered to give you $11,500 in six years, after he has made his first million dollars. You 3. In four years, you would like to buy a small cabin in the mountains. You estimate that the property will cost you $67,500 when you 4. You have estimated that your educational expenses over the next four years will be $14,500 per year. How much money do you figure that if you had the money today. you could invest it at 14 percent annual interest. What is the present value of your friends future gift? are ready to buy. How much money would you need to invest each year in an account bearing interest at the rate of 6 percent per year in order to accumulate the $67500 purchase price? need in your account now in order to withdraw the required amount each year? Your account bears interest at 10 percent per year References In four years, you would like to buy a small cabin in the mountains. You estimate that the property will cost you $67,500 when you are ready to buy. How much money would you need to invest each year in an account bearing interest at the rate of per year in order to accumulate the $67, s00 purchase price? (Round your answer
