Regarding answer format: Be sure you are using 4 decimals of precision in your calculator display, now it matters. N. if the question is asking for a dollar amount, answer to two decimals (ie. Sx.xxx.xx) N. In no cose do you need to answer o question with a negative number just input answers as normal (*) numbers. iv. of the question is asking for a %, answer to three decimals (ie. xx.xxx%). Easy Computations (7 points each) 2 3 Begi You open a savings account that pays 4.000%. You invest $1,000. What is it worth at the end of 1 year? PV-1000 PMT=0 1470 N=1 $1,040 You open a savings account that pays 4.000%. You invest $1,000. What is it worth at the end of 5 years? PY,000 DMTO i = 4% N-5 $ 1,216.205 UCCS tuition costs $10,000 per year. Nationwide tuition costs have been rising, on average, about 6.000% per year. If that continues in the future, and if you expect your children to enter university in 25 years, what can we expect the annual tuition cost to be then? PV--10,000 PMT=D i 6% $ 42,918.71 No 25 You w have saved $500,000 on the day you retire, which is exactly 45 years from today. If you could earn 5.500% interest per year on your savings account, what would you have to deposit today to have $500,000 in 45 years? 5.5% N=45 FY 500,000 PMT-0 On the day of your child's birth, you open a savings account for their college education. Your goal is to give them $50,000 for college when they turn 18. The account earns 4.500% interest per year. What do you need to deposit today to meet your goal for the child? 4 5 Intermediate Computations (5 points each) 6 You graduate UCCS at age 22 and set the goal of saving $100,000 by the time you're 30. You have no savings today but figure you can save something every year. If you can earn 4.000% per year on your deposits, how much do you need to save each year to reach you goal in eight years? 7 You graduate UCCS at age 22 and set the goal of saving $100,000 by the time you're 30. You have $20.000 in savings today but figure you can also save something every year. If you can earn 4.000% per year on your deposits, how much do you need to save each year to reach you goal in eight years? You realize that you can't afford to save up $100,000 by the time you're 30, but you're determined to save what you can. You have ne savings today and your budget allows you to save $6,000 per year. If you can earn 4.000X per year, then what should you have in eight years when you turn 307 You are considering buying a preferred stock that pays a $10 perpetual annual dividend. If you use a discount rate of 12%, what is the value of this preferred stock (e. what is the PV of the perpetuity)? 10 You are considering buying a preferred stock that pays a $10 perpetual annual dividend. If you use a discount rate of 6%, what is the value of this preferred stock (e. what is the PV of the perpetuity)? 1