Question

**a.** How much would you have to deposit today if
you wanted to have $42,000 in three years? Annual interest rate is
10%. (PV of $1, FV of $1, PVA of $1, and FVA of $1) **(Use
appropriate factor(s) from the tables provided. Round your answer
to the nearest whole dollar.)**

**b.** Assume that you are saving up for a trip around
the world when you graduate in two years. If you can earn 6% on
your investments, how much would you have to deposit today to have
$10,500 when you graduate? **(Round your answer to 2 decimal
places.)**

**c-1.** Calculate the future value of an investment
of $499 for nine years earning an interest of 10%. **(Round
your answer to 2 decimal places.)**

**d.** Assume that a college parking sticker today
costs $62. If the cost of parking is increasing at the rate of 6%
per year, how much will the college parking sticker cost in seven
years? **(Round your answer to 2 decimal
places.)**

Answer #1

a.

Future value = Amount required after 3 years = $42,000

Annual interest rate = 10%

Present value = Future value / (1 + Interest rate)^{No. of
periods}

Amount to be deposited today = $$42,000 / 1.10^{3} =
$42,000 /1.331

=> $31555.22

b.

Amount required after 2 years from now = $10,500

Annual interest rate = 6%

Present value = Future value / (1 + Interest rate)^{No. of
periods}

Deposit today = $10,500/1.06^{2}

^{= $10,500/1.1236}

^{=>$9,344.96}

^{c-1.}

Value of investment now = $499

Annual interest rate = 10%

Period = 9 years

Future value = Present value * (1 + Interest rate)^{No. of
periods}

Value of investment after 9 years = $499 * 1.10^{9}

=$499*2.3579

=$1,176.59

d.

Future value = Present value * ( 1 + Interest rate)^{No. of
periods}

Future value = $62 * (1 + .06)^{7}

=$62*1.50

=>$93

How much money would you have to deposit today in order to have
$5,000 in four years if the discount rate is 7 percent per year?
(Do not round intermediate calculations. Round your answer to 2
decimal places. (e.g., 32.16)) Amount of deposit

How much would you have to deposit today if you want to have
$1,000 in five years and the annual interest rate is 5%?
You plan to buy a house today for $220,000. If the real estate
in your area is expected to increase in value by 2% each year, what
will be the approximate value of your house in 7 years?
How much would you have to deposit today to be able to withdraw
$500 each year for the...

How much will you have in thirty-one years if you invest $220
today, and can earn 4.3%?
What is an investment fund worth today that will pay you $32,000
in eleven years, if you can earn 6%?
Your parents will put $13,000 into a Certificate of Deposit (CD)
today to provide you with $30,000 for your college education. If
the interest rate is 5%, how many years must you wait before you
can go to college?

1. Suppose you deposit $130 into a bank today, earning 2.5%
interest. How much would you have after one year?
2. You expect to have $1,000 in one year. A bank is offering
loans at 7.0 % interest per year. How much can you borrow today if
you plan to use this money to repay the loan? Round to the nearest
whole cent.

Q1) Suppose you invest $66,624 today in an account that earns
13.00% interest annually. How much money will be in your account 11
years from today?
Q2) What is the value today, of single payment of $51,252 made
13 years from today, if the value is discounted at a rate of
04.00%?
Q3) How many years would it take an investment of $333 to grow
to $10,789 at an annual rate of return of 11.00%?
Q4) How much money would...

How much would you have to invest today to receive the
following? a. $15,500 in 12 years at 11 percent. (Do not round
intermediate calculations. Round your final answer to 2 decimal
places.) b. $20,000 in 19 years at 7 percent. (Do not round
intermediate calculations. Round your final answer to 2 decimal
places.) c. $8,100 each year for 18 years at 15 percent. (Do not
round intermediate calculations. Round your final answer to 2
decimal places.) d. $56,000 each...

If you invest $17,000 today, how much will you have in each of
the following cases? Enter all answers as positive amounts.
a. In 6 years at 7 percent? (Round your final answer to 2
decimal places.)
b. In 20 years at 9 percent? (Round your final answer to 2
decimal places.)
c. In 10 years at 12 percent (compounded semiannually)? (Round
your final answer to 2 decimal places.)

If you deposit $100,000 today at 8 percent interest compounded
quarterly, how much will you have accumulated after 5 years
$67,297.13
$68,058.32
$146,932.74
$148,594.74

How much would you have to invest today to receive the
following? Use Appendix B and Appendix D for an approximate answer,
but calculate your final answer using the formula and financial
calculator methods.
c. $6,800 each year for 20 years at 6 percent.
(Do not round intermediate calculations. Round your final
answer to 2 decimal places.)
d. $45,000 each year for 40 years at 10
percent. (Do not round intermediate calculations. Round
your final answer to 2 decimal places.)

How much would you have to invest today to receive the
following? Use Appendix B and Appendix D for an approximate answer,
but calculate your final answer using the formula and financial
calculator methods.
a. $16,800 in 10 years at 15 percent. (Do
not round intermediate calculations. Round your final answer to 2
decimal places.)
b. $21,000 in 15 years at 12 percent.
(Do not round intermediate calculations. Round your final
answer to 2 decimal places.)
c....

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 1 minute ago

asked 1 minute ago

asked 1 minute ago

asked 1 minute ago

asked 1 minute ago

asked 5 minutes ago

asked 11 minutes ago

asked 15 minutes ago

asked 19 minutes ago

asked 27 minutes ago

asked 40 minutes ago

asked 48 minutes ago