(Related to Checkpoint 5.4) (Present value) What is the present value of

$700

to be received

15

years from now discounted back to the present at

8

percent?

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Part 1

The present value of

$700

to be received

15

years from now discounted back to the present at

8

percent is

$enter your response here.

(Round to the nearest cent.)

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11

Question 12

Question 13

Question 14

Question 15

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Part 1

(Related to Checkpoint 5.6) (Solving for

i)

You are considering investing in a security that will pay you

$5,000

in

35

years.a.If the appropriate discount rate is

8

percent,

what is the present value of this investment?b.Assume these investments sell for

$1,485

in return for which you receive

$5,000

in

35

years. What is the rate of return investors earn on this investment if they buy it for

$1,485?

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Part 1

a.If the appropriate discount rate is

8

percent, the present value of this investment is

$enter your response here.

(Round to the nearest cent.)

Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new

$300,000

Rolls-Royce Phantom. Jack currently has

$25,250

that he may invest. He has found a mutual fund with an expected annual return of

6.5

percent in which he will place the money. How long will it take Jack to win Jill's hand in marriage? Ignore taxes and inflation.

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Part 1

The number of years it will take for Jack to win Jill's hand in marriage is

enter your response here

years. (Round to one decimal place.)