Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

places.) Provided are links to the present and future value tables: (PV of $1. FV of $1. PVA of $1, and FVA of S1) (Use

image text in transcribed
image text in transcribed
places.) Provided are links to the present and future value tables: (PV of $1. FV of $1. PVA of $1, and FVA of S1) (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 $57,000 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 $15,500 when you graduate? (Round your answer to 2 decimal places.) c1. Calculate the future value of an investment of $679 for nine years earning an interest of 10% (Round your answer to 2 decimal 2. Would you rather have $679 now or $1,800 nine years from now? d. Assume that a college parking sticker today costs $82. 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 $125.000. If the cost of a new ilome i increasing at a rate of 8% per year, how much will a new home cost in ten years? (Round your answer to 2 decimal places.) 1. An investment will pay you $10.500 in 10 years, and it also will pay you $310 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 intermediate calculations and final answer to the nearest whole dollar) 9. A college student is reported in the newspaper as having won $11000 000 in the Kansas State Lottery However, as is often the custom with lotteries, she does not actually receive the entire $11 million now. Instead she will receive $550,000 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) (Round your answer to nearest whole dollar) $ $ 40,379 48,866 10 a. Present value b. Present value c-1. Future value c-2 Would you rather have $679 now or $1,800 nine years from now? d. Future value e. Future value f. Present value g. Present value

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