Question
Q1.You're trying to save to buy a new $189,449 Tesla. You have $51,293 today that can be invested at your bank. The bank pays 5
Q1.You're trying to save to buy a new $189,449 Tesla. You have $51,293 today that can be invested at your bank. The bank pays 5 percent annual interest on its accounts. How long will it be before you have enough to buy the car? (Round your final answer to two decimal places.)
Q2.Imprudential, Inc. has an unfunded pension liability of $41 million that must be paid in 19 years. To assess the value of the firms stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 9.1 percent, what is the present value of this liability? (Round your final answer to the nearest dollar and enter in dollars, not millions of dollars--e.g., 1,234,567.)
Q3. Your coin collection contains 55 silver dollars minted in 1,961. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2,061, assuming they appreciate at a 4.7 percent annual rate? (Round your final answer to two decimal places.)
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