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does anyone know how to do this probelm question??? its mangerial accounting btw Exercise B-18 (Algo) Practical applications of the time value of money LO
does anyone know how to do this probelm question??? its mangerial accounting btw
Exercise B-18 (Algo) Practical applications of the time value of money LO P1, P2, P3, P4 Provided ate links to the present and future value tables: (PV of S1 EV of S1. PVA of S1, and EVA of \$1) (Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) a. How much would you have to deposit today if you wanted to have $64,000 in threo years? Annual interest rate is to\% b. Assume that you are saving up for a trip around the world when you graduate in three years. If you can earm 6% on your investments, how much would you have to deposit today to have \$18,000 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an investment of $774 for ten years earning an interest of 9% (Round your answer to 2 decimal places.) c-2. Would you rather have $774 now or $1,800 ten years from now? d. Assume that a college parking sticker today costs $92. If the cost of parking is increasing at the rate of 6% peryear, how much will the college parking sticker cost in seven years? (Round your answer to 2 decimal places.) e. Assume that the average price of a new home is $132,500. If the cost of a new home is increasing at a rate of 7% per year, how much will a new home cost in eight years? (Round your answer to 2 decimal places.) f. An investment will poy you $13,000 in 9 years, and it also will pay you $360 ot the end of cach of the next 9 years lyears 1 through 9). If the annual interest rate is 5%, how much would you be wiling to pay today for this type of investment? (Round your intermediate calculations and final answer to the nearest whole dollar.) 9. A college student is reported in the newspaper as having won \$13,500,000 in the Kansas State Lottery, However, as is often the g. A coliege student is reported in the newspaper as having won $13,500,000 in the with lotteries, she does not actually receive the entire $13.5 millon now. Instead she will recelve $675,000 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 to nearest whole dollor) custom with lotteries, she does not actually recelve the entire $13.5 million now. Instead she will recelve $675,000 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 to nearest whole dollar.) Step by Step Solution
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