eBook Chapter 2 Financial Planning Exercise 6 Calculating present and future values Use future or present value techniques to solve the following problems. a. If you inherited $20,000 today and invested all of it in a security that paid a 9 percent rate of return, how much would you have in 25 years? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor. $ Calculate your answer based on the financial calculator. b. If the average new home costs $230,000 today, how much will it cost in 15 years if the price increases by 5 percent each year? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor. $ Calculate your answer based on the financial calculator. $ c. You forecast that in 13 years it will cost $242,000 to provide your child a 4-year college education. Will you have enough if you take $84,000 today and invest it for the next 13 years at 8 percent? Round the answer to the nearest cent. Round FV-factor and FVA-factors to three decimal places. -Select-, you will have approximately $ -Select- than your estimate of $242,000. d. If you can earn 9 percent, how much will you have to save each year if you want to retire in 35 years with $1.6 million? Round the answer to the nearest cent. Round FVA-factor to three decimal places. Calculate your answer based on the FVA-factor. $ Calculate your answer based on the financial calculator.