Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need help please. Provided are links to the present and future value tables: (PV of $1. EV of $1. PVA of $1, and EVA of
need help please.
Provided are links to the present and future value tables: (PV of \$1. EV of \$1. PVA of \$1, and EVA of \$1) (Use appropriate factor(s) from the tables provided.) a. How much would you have to deposit today if you wanted to have $60,000 in four years? Annual interest rate is 9%. b. Assume that you are saving up for a trip around the world when you graduate in two years. If you can earn 8% on your investments, how much would you have to deposit today to have $15,000 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an investment of $463 for 10 years earning an interest of 9%. (Round your answer to 2 decimal places.) c-2. Would you rather have $463 now or $1,000 ten years from now? d. Assume that a college parking sticker today costs $90. If the cost of parking is increasing at the rate of 5% per year, how much will the college parking sticker cost in eight years? (Round your answer to 2 decimal places.) e. Assume that the average price of a new home is $158,500. If the cost of a new home is increasing at a rate of 10% 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 $10,000 in 10 years, and it also will pay you $400 at the end of each of the next 10 years (years 1 through 10). If the annual interest rate is 6%, how much would you be willing to pay today for this type of investment? (Round your answer to nearest whole dollar.) 9. A college student is reported in the newspaper as having won $10,000,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $10 million now. Instead she will receive $500,000 at the end of the year for each of the next 20 years. If the annual interest rate is 6%, what is the present value (today's amount) that she won? (ignore taxes.) how much would you have to deposit today to have $15,000 when you graduate? (Round your answer to 2 decil c-1. Calculate the future value of an investment of $463 for 10 years earning an interest of 9%. (Round your answ places.) c-2. Would you rather have $463 now or $1,000 ten years from now? d. Assume that a college parking sticker today costs $90. If the cost of parking is increasing at the rate of 5% per the college parking sticker cost in eight years? (Round your answer to 2 decimal places.) e. Assume that the average price of a new home is $158,500. If the cost of a new home is increasing at a rate of 1 much will a new home cost in eight years? (Round your answer to 2 decimal places.) f. An investment will pay you $10,000 in 10 years, and it also will pay you $400 at the end of each of the next 10y 10). If the annual interest rate is 6%, how much would you be willing to pay today for this type of investment? (Rou nearest whole dollar.) 9. A college student is reported in the newspaper as having won $10,000,000 in the Kansas State Lottery. Howev custom with lotteries, she does not actually receive the entire $10 million now. Instead she will receive $500,000 for each of the next 20 years. If the annual interest rate is 6%, what is the present value (today's amount) that she Compute the amount that can be borrowed under each of the following circumstances: (PV of \$1. FV of \$1, PVA of \$1, and FVA of \$1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places.) 1. A promise to repay $90,000 seven years from now at an interest rate of 6%. 2. An agreement to make three separate annual payments of $20,000, with the first payment occurring 1 year from now. The annual interest rate is 10% Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started