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Provided are links to the present and future value tables: ( P V of $ 1 , F V of $ 1 , PVA of

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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 also will pay you $240 at the end of
each of the next 9 years (years 1 through 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.)
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