Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

letters E, F, G. thanks!! Provided are links to the present and future value tables: (PV of $1. FV of $1. PVA of $1, and

letters E, F, G.
thanks!! image text in transcribed
Provided are links to the present and future value tables: (PV of $1. FV of $1. PVA of $1, and FVA 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 $46,000 in three years? Annual interest rate is 10% b. Assume that you are saving up for a trip around the world when you graduate in three years. If you can earn 6% on your investments, how much would you have to deposit today to have $12,000 when you graduate? (Round your answer to 2 decimal places.) C-1. Calculate the future value of an investment of $558 for ten years earning an interest of 9%. (Round your answer to 2 decimal places.) c-2. Would you rather have $558 now or $1,000 ten years from now? d. Assume that a college parking sticker today costs $68. If the cost of parking is increasing at the rate of 6% per year, 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 $114,500. 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 pay you $7,000 in 9 years, and it will also pay you $240 at the end of each of the next 9 years (years 1 thru 9). If the annual interest rate is 5%, how much would you be willing to pay today for this type of investment? (Round your intermediate calculations and final answer to the nearest whole dollar.) g. A college student is reported in the newspaper as having won $7,500,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $7.5 million now. Instead she will receive $375,000 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.) a. Present value $ b. Present value 34,560 10,075.43 1,320.99 $ $ Now $ C-1. Future value c-2. Would you rather have $558 now or $1,000 ten years from now? d. Future value e. Future value 1. Present value 9. Present value 102.25 1,557,200.00 $ Prev 1 of 2 !!! Next >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions