Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 8 (2 points) Carla Lopez deposits $12410 a year into her retirement account. If these funds have an average earning of 4 percent over

Question 8 (2 points)

Carla Lopez deposits $12410 a year into her retirement account. If these funds have an average earning of 4 percent over the 13 years until her retirement, what will be the value of her retirement account?

Use the appropriate Time Value of Money table [Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit 1-D]

(Round your answer to the nearest whole number. Do not include the comma, period, and "$" sign in your response.)

Your Answer:

Question 8 options:

Answer

Question 9 (2 points)

If a person spends $17 a week on coffee (52 weeks in a year), what would be the future value of that amount over 16 years if the funds were deposited in an account earning 7 percent?

Use the appropriate Time Value of Money table [Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit 1-D]

(Round your answer to the nearest whole number. Do not include the comma, period, and "$" sign in your response.)

Your Answer:

Question 9 options:

Answer

Chapter 1 LO 1.3

Question 10 (2 points)

Question 10 options:

A financial company that advertises on television will pay you $55,000 now for annual payments of $9,500 that you are expected to receive for a legal settlement over the next 9 years. Assume you estimate the time value of money at 12 percent.

Use the appropriate time value of money table [Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit 1-D].

(a) What is the present value?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Financial Econometrics

Authors: Yacine Ait-Sahalia, Lars Peter Hansen

1st Edition

044450897X, 978-0444508973

More Books

Students also viewed these Finance questions