Questions 1-25 answer all

First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest compounded annually Dont If you made a $69.000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years? (Do not round intermediate calculations and round your answer to 2 decimal places. e... 32.16.) eBook Difference in accounts For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Future Value Years 12 Interest Rate 12 % Present Value $ 1,900 8052 6 9.355 176,796 Hint 13 KEEEE For each of the following, compute the present value (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): Present Value Years Interest Rate Future Value 137 0 $ 15251 41349,557 2914 8 84073 548.164 eBook Hint Pet SIS TEREN Solve for the unknown interest rate in each of the following (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.) Doints $ Present Value Years Interest Rate Future Value $ 230 3NLAR 350 17 ONNISRISER 972 38,000 18 163663 20 269 eBook 37 261 Solve for the unknown number of years in each of the following (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.): Years Present Value $ 540 790 18.200 21,300 Interest Rate SS 9% 10 17 151 Future Value $ 1.317 1 743 2 77.707 4 14.506 eBook Hla Prin References Assume the total cost of a college education will be $300,000 when your child enters college in 18 years. You presently have $63,000 to invest. 1 points What annual rate of interest must you earn on your investment to cover the cost of your child's college education? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) eBook Annual rate of interest % Print At 6.2 percent interest, how long does it take to double your money? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Length of time years points eBook Print ESTE References At 6.2 percent interest how long does it take to quadruple it? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) RE Length of time years FEN You're trying to save to buy a new $204,000 Ferrari. You have $54,000 today that can be invested at your bank. The bank pays 6.2 percent annual interest on its accounts. How long will it be before you have enough to buy the car? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Doints Number of years eBook Hint Print References Imprudential, Inc., has an unfunded pension liability of $585 million that must be paid in 20 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 78 percent, what is the present value of this liability? (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g.. 1.234,567.89) Present value 11 You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 68 years from now. points What is the present value of your windfall if the appropriate discount rate is 9 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) eBook Print Present value References Your coin collection contains 54 1952 silver dollars. If your grandparents purchased them for their face value when they were new. how much will your collection be worth when you retire in 2064, assuming they appreciate at an annual rate of 4.5 percent? (Do not calculations and round your answer to 2 decimal places, e.g. 32.16.) Answer is complete but not entirely correct. Future value $ 12.779.71 In 1895, the first Putting Green Championship was held. The winner's prize money was $160. In 2016, the winner's check was $1.460,000. points a. What was the percentage increase per year in the winner's check over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the winner's prize increases at the same rate, what will it be in 2050? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) eBook Print References a. Increase per year b. Winners prize in 2050 14 Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, an auction house sold a sculpture at auction for a price of $10.361,500. Unfortunately for the previous owner, he had purchased it in 2000 at a price of $12,477.500. What was his annual rate of return on this sculpture? (A negative answer should be indicated by a minus sign. Do not round intermediate calculation answer as a percent rounded to 2 decimal places, e.g., 32.16.) eBook Hint Annual rate of return A coin sold at auction in 2017 for $2.777,000. The coin had a face value of $1 when it was issued in 1790 and had previously been sold for $115,000 in 1977 a. eBook At what annual rate did the coin appreciate from its first minting to the 1977 sale? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) What annual rate did the 1977 buyer earn on his purchase? (Do not round alculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) At what annual rate did the coin appreciate from its first minting to the 2017 sale? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Print References a. Rate of return from 1790 to 1977 b. Rate of return from 1977 to 2017 c. Rate of return from 1790 to 2017 Suppose the government decides to issue a new savings bond that is guaranteed to double in value if you hold it for 18 years. Assume you purchase a bond that costs $50. points Book Print a. What is the exact rate of return you would earn if you held the bond for 18 years until It doubled in value? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If you purchased the bond for $50 in 2017 at the then current interest rate of 12 percent year, how much would the bond be worth in 2026? (Do not round Intermediate calculations and round your answer to 2 decimal places, o... 32.16.) c. In 2026, instead of cashing in the bond for its then current value, you decide to hold the bond until it doubles in face value in 2035. What annual rate of return will you earn over the last 9 years? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) References a. Rate of retum b. Value of bond c. Rate of return You have just made your first $5.400 contribution to your retirement account. Assume you earn a return of 13 percent per year and make no additional contributions. a. What will your account be worth when you retire in 41 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) b. What if you wait 10 years before contributing? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) eBook HE a. Future value for starting now b. Future value if waiting 10 years References You are scheduled to receive $14,500 in three years. When you receive it, you will invest it for nine more years at 9.75 percent per year How much will you have in twelve years? (Do not round intermediate calculations and round your answer to 2 decimal places, e... 32.16.) Amount According to the Census Bureau, in October 2016, the average house price in the United States was $354 900. In October 2000, the average price was $215,100. What was the annual increase in the price of the average house sold? (Do not round intermediate calculations and enter your answer as a percent rounded answer to 2 decimal places, e.g., 32.16.) Annual increase in selling price Chopiel JSILD 24 In 1895, the first US Open Golf Championship was held. The winner's prize money was $150. In 2016, the winner's check was $1,800,000 What was the percentage increase per year in the winner's check over this period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) points Interest rate If the winner's prize increases at the same rate, what will it be in 2040? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) Future value