Question 10.25 pts

Jason just found a mutual fund that promises an 11.5% rate of return. He wants to use it to develop a college fund for his kids. If he wants to have $40,000, 18 years from now, how much money will Jason need to deposit today in the account?

Group of answer choices

$2,222.22

$283,796.87

$5,637.84

$5,962.34

Flag question: Question 2Question 20.25 pts

Logan has an investment portfolio that has now grown to $1,800,000. If this investment has been earning 10.5% interest with monthly compounding for the past 37 years, what was his original investment amount?

Group of answer choices

$38,886.90

$48,648.65

$37,616.41

$44,757,75

Flag question: Question 3Question 30.25 pts

Peter will receive a trust fund payment 8 years from now totaling $45,000. Based on a discount rate of 10.5%, how much is the trust fund payment worth in today's dollars?

Group of answer choices

$5,625.00

$20,056.87

$100,025.50

$20,244.84

Flag question: Question 4Question 40.25 pts

Josh has an investment that has now grown to $60,000. If this investment has been earning 12.5% interest with monthly compounding for the past 18 years, what was his original investment amount?

Group of answer choices

$6,397.98

$3,333.33

$7,201.22

$562,677.46

Flag question: Question 5Question 50.25 pts

Brock has an account that will be worth $670,000 after 34 years . How much is it worth today (PV) based on a rate of 11% that has MONTHLY compounding?

Group of answer choices

$19,705.88

$16,188.73

$19,279.40

$18,563.85

Flag question: Question 6Question 60.25 pts

Alfred will receive a payment 9 years from now totaling $10,500. Based on a discount rate of 9.5%, how much is the trust fund payment worth in today's dollars?

Group of answer choices

$4,630.60

$4,639.40

$23,763.83

$1,166.67

Flag question: Question 7Question 70.25 pts

Charlie just found out his old beanie baby bear is worth $42,000. He's had the bear for 15 years. If this bear's value grew at a rate of 85%, how much did Charlie pay for the bear, originally?

Group of answer choices

$4.13

$5.15

$0.29

$427,390,846.37

Flag question: Question 8Question 80.25 pts

Sam just won some valuable sculptures in a contest. He wants to sell them and has received two comparable offers. Buyer 1 is offering $50,000, but wants Sam to keep the sculptures for 3 years before the buyer can pay him for them. Buyer 2 is offering $35,000 to buy the sculptures today. If Sam takes Buyer 2's offer, he can invest the money in an account that earns 9.5%, compounding monthly. Based on this 9.5% compounding discount rate, what is the present value of Buyer 1's offer? Which offer should Daniel take?

Group of answer choices

$66,413.53. Take offer 1.

$37,642.93. Take offer 1.

$37,758.64. Take offer 1.

$46,489.47. Take offer 1.

Flag question: Question 9Question 90.25 pts

Jackson has an account with a FV of $1,000,000 38 years from now. How much is it worth today (PV) based on a rate of 10% that has MONTHLY compounding?

Group of answer choices

$26,315.79

$24,356.96

$22,725.81

$26,734.86

Flag question: Question 10Question 100.25 pts

Matt has some rare Lego sets that he has calculated will be worth $16,000 if he holds onto them for 8 years. He also has a mutual fund that earns 11.5% interest, compounding monthly. Matt was just offered $6,500 for the sets today. What is the PV of the sets? Should he sell them today?

Group of answer choices

$6,404.30. Yes, sell today.

$6,500.00. Yes, sell today.

$6,603.08. No, don't sell today.

$6,697.63. No, don't sell today.