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Carrie Tune will receive $32,900 for the next 17 years as a payment for a new song she has written. Use Appendix D for an
Carrie Tune will receive $32,900 for the next 17 years as a payment for a new song she has written. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. What is the present value of these payments if the discount rate is 12 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value b. Should she be willing to sell out her future rights now for $209,000? No Yes Mrs. Crawford will receive $8,800 a year for the next 19 years from her trust. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. If a 15 percent interest rate is applied, what is the current value of the future payments? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value If you invest $9,900 per period for the following number of periods, how much would you have in each of the following instances? Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. In 8 years at 9 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value b. In 30 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value Your uncle offers you a choice of $109,000 in 10 years or $35,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 9 percent, what is the present value of the $109,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value Present value a-2. Which offer should you choose? O $109,000 after 10 years O $35,000 today
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