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Provided are links to the present and future value tables: ( P V of $ 1 , F V of $ 1 , PVA of
Provided are links to the present and future value tables: of $ of $PVA of $ and
FVA of $Use appropriate factors 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 $ in three
years? Annual interest rate is
b Assume that you are saving up for a trip around the world when you graduate in three
years. If you can earn on your investments, how much would you have to deposit today
to have $ when you graduate? Round your answer to decimal places.
c Calculate the future value of an investment of $ for ten years earning an interest of
Round your answer to decimal places.
Would you rather have $ now or $ ten years from now?
d Assume that a college parking sticker today costs $ If the cost of parking is increasing
at the rate of per year, how much will the college parking sticker cost in seven years?
Round your answer to decimal places.
e Assume that the average price of a new home is $ If the cost of a new home is
increasing at a rate of per year, how much will a new home cost in eight years? Round
your answer to decimal places.
f An investment will pay you $ in years, and it also will pay you $ at the end of
each of the next years years through If the annual interest rate is 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 $ in the Kansas
State Lottery. However, as is often the custom with lotteries, she does not actually receive
the entire $ million now. Instead she will receive $ at the end of the year for each
of the next years. If the annual interest rate is what is the present value todays
amount that she won? ignore taxesRound your answer to nearest whole dollar.
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