Intermediate Computations (5 points each) Intermediate 7 You graduate UCCS at age 22 and set the goal of saving $100,000 by the time you're 30. You have no savings today but figure you can save something every year. If you can earn 4.000% per year on your deposits, how much do you need to save each year to reach you goal in eight years? FV = 100,000 i = 49% N = 8 PV-o You graduate UCCS at age 22 and set the goal of saving $100,000 by the time you're 30. You have $20,000 in savings today but figure you can also save something every year. If you can earn 4.000% per year on your deposits, how much do you need to save each year to reach you goal in eight years? FV = $ 100,000 = 4% N = 8 PV= $20,000 You realize that you can't afford to save up $100,000 by the time you're 30, but you're determined to save what you can. You have no savings today and your budget allows you to save $6,000 per year. If you can earn 4.000% per year, then what should you have in eight years when you turn 30? N= 8 14% PY=0 You are considering buying a preferred stock that pays a $10 perpetual annual dividend. If you use a discount rate of 12%, what is the value of this preferred stock (i.e. what is the PV of the perpetuity)? 8 9 10 You are considering buying a preferred stock that pays a $10 perpetual annual dividend. If you use a discount rate of 6%, what is the value of this preferred stock (i.e. what is the PV of the perpetuity)? 1