You receive a $7.000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 10% per year and you think you will need to have $14,000 saved for the down payment. How long will it be before the $7,000 has grown to $14,000 ? To double the money you received from your grandparents, it will take years. (Round to one decimal place.) Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your current salary is $50,000 and you expect your salary to increase at a rate of 3% per year as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the rate of interest is 9% The present value (PV) (at age 30) of your retirement savings is closest to: O A. $40,234 B. $57.477 C. $63,225 D. $28,739 If $9,000 is invested in a certain business at the start of the year, the investor will receive $2,700 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 3% per year? A. $1,658 B. $1,036 c. $518 D. $1,243 If the current rate of interest is 7%, then the present value (PV) of an investment that pays $1,400 per year and lasts 22 years is closest to: A. $21,680 B. $18,583 C. $9,292 D. $15,486 Which of the following formulas is INCORRECT? A. PV of a growing perpetuity = r-g B. PV of an annuity = C X {-4m) (1 + r)^ PV of a perpetuity = D. PV of a growing annuity = CX +86-(1+) ") You are interested in purchasing a new automobile that costs $31,000. The dealership offers you a special financing rate of 6% APR (0.5%) per month for 48 months. Assuming that you do not make a down payment on the auto and you take the dealer's financing deal, then your monthly car payments would be closest to: A. $1,165 B. $728 OC. $1,019 D. $582 You receive a $7,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 10% per year and you think you will need to have $14,000 saved for the down payment. How long will it be before the $7,000 has grown to $14,000 ? To double the money you received from your grandparents, it will take years. (Round to one decimal place.)