Question

PLEASE ANSWER ALL, I am unable to post individually. Do NOT answer, If you are not going to complete all, and or request to post the remaining separately. Thank you !

4.Your birthday is next week and instead of other presents, your parents promised to give you $2,700 in cash. Since you have a part-time job and, thus, don’t need the cash immediately, you decide to invest the money in a bank CD that pays 7.80 percent, compounded quarterly, for the next two years. How much money can you expect to earn in this period of time? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)

6. John Johnson, a catcher for the Minnesota Twins, is expected to hit 35 home runs in 2018. If his home-run-hitting ability is expected to grow by 12.50 percent every year for the following five years, how many home runs is he expected to hit in 2023? (Do not round intermediate calculations and round your final answer to the nearest whole number.)

8.Betty Harris has been offered a future payment of $900 two years from now. If she can earn an annual rate of 7.00 percent, compounded daily, on her investment, what should she pay for this investment today? (If you solve this problem with algebra round intermediate calculations to 5 decimal places, in all cases round your final answer to the nearest penny.)

9.You want to buy some bonds that will have a value of $1,000 at the end of 10 years. The bonds pay 5.00 percent interest annually. How much should you pay for them today? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)

10. Michelle Walker wants to accumulate $13,500 by the end of 12 years. If the annual interest rate is 8.00 percent and interest compounds semiannually, how much will she have to invest today to achieve her goal? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)

11.You invest $260 in a mutual fund today that pays 6.30 percent interest annually. How long will it take to double your money? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to 0 decimal place, e.g. 545)

Answer 1

Present value = Future value/(1+i)^n

i = interest rate per period

n= number of periods

4)

future value = 2700 * (1+7.8%/4)^8 = 3151.1

Net earnings = 3151.1 - 2700 = 451.1

6)

future value = 35 * (1 + 12.5%)^5 = 63

he is expected to hit 63 home runs in 2023

8)

Assuming 365 days a year

present value = 900/(1+ 7%/365)^700

= 786.95

9)

present value = 1000/(1+5%)^10

= 613.91

10)

present value = 13500/(1+8%/2)^24

= 5266.64

11)

future value = 260*2 = 520

=>

260 * (1+6.3%)^n = 520

=>

n = ln(2)/ln(1.063)

= 11 years