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Provided are links to the present and future value tables: ( PV of $ 1 , FV of $ 1 , PVA of $ 1
Provided are links to the present and future value tables: PV of $ FV of $ PVA of $ and FVA of $
Note: 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 five 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?
Note: Round your answer to decimal places.
c Calculate the future value of an investment of $ for eight years earning an interest of
Note: Round your answer to decimal places.
c Would you rather have $ now or $ eight 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 nine years?
Note: 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 nine years?
Note: 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?
Note: 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 taxes
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