Time Value of Money Questions

Problem 1: On the day you were born, your parents took $8952 to the bank and purchased a 25 year CD that will earn 3.4% interest. How much money will you have on your 25th birthday? Problem 2: Congratulations! You just won the lottery. Beginning today, you will, receive $5000 per week for the next 30 years. Assuming an interest rate of 2.75%, what is the Present Value of this prize? 25 3.40% 8952 NPER I/Y (Rate) PV PMT0 FV Compounding Periods CPT (Compute) ? NPER I/Y (Rate) PV PMT FV Compow Periods CPT (Compute) ? 30 2.75% ? 5000 ? 25 $20,650.64 >> DO NOT CUT & PASTE FORMULAS - ENTER THEM MANUALLY er year