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For each of the following situations, identify ( 1 ) the case as either ( a ) a present or a future value and (
For each of the following situations, identify the case as either a a present or a future value and b a single amount or an annuity, the table you would use in your computations but do not solve the problem and the interest rate and time periods you would use. PV of $ FV of $ PVA of $ and FVA of $
Note: Use appropriate factors from the tables provided. Round "Table Factors" to decimal places.
a You need to accumulate $ for a trip you wish to take in five years. You are able to earn compounded semiannually on your savings. You plan to make only one deposit and let the money accumulate for five years. How would you determine the amount of the onetime deposit?
b Assume the same facts as in part a except that you will make semiannual deposits to your savings account. What is the required amount of each semiannual deposit?
You want to retire after working years with savings in excess of $ You expect to save $ a year for years and earn an annual rate of interest of
c Will you be able to retire with more than $ in years?
d A sweepstakes agency names you a grand prize winner. You can take $ immediately or elect to receive annual installments of $ for years. You can earn annually on any investments you make.
d Which prize do you choose to receive?
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