Question

Homework Provided are links to the present and future value tables: PV of $1. EV of $1. PVA of $1. and EVA of $1 (Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) a. How much would you have to deposit today if you wanted to have $40,000 in five years? Annual Interest rate is 8%. b. Assume that you are saving up for a trip around the world when you graduate in three years. If you can earn 7% on your investments, how much would you have to deposit today to have $10,000 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an investment of $486 for eight years earning an interest of 12%. (Round your answer to 2 decimal places.) c-2. Would you rather have $486 now or $1.000 eight years from now? d. Assume that a college parking sticker today costs $60. If the cost of parking is increasing at the rate of 4% per year, how much will the college parking sticker cost in nine years? (Round your answer to 2 decimal places.) e. Assume that the average price of a new home is $100.000. If the cost of a new home is increasing at a rate of 9% per year, how much will a new home cost in nine years? (Round your answer to 2 decimal places.) f. An investment will pay you $5,000 in 9 years, and it will also pay you $200 at the end of each of the next 9 years [years 1 thru 9). If the annual interest rate is 5%, how much would you be willing to pay today for this type of investment? (Round your intermediate calculations and final answer to the nearest whole dollar.) 9. A college student is reported in the newspaper as having won $5,000,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $5 million now. Instead she will receive $250,000 at the end of the year for each of the next 20 years. If the annual interest rate is 5%, what is the present value today's amount') that she won? (ignore taxes). (Round your answer to nearest whole dollar.) a Present value b. Present value C-1 Future value 02. Would you rather have $463 now or $1,000 ten years from now? d. Future value e Future value Present value o Present value Prox 1 of 1 !!! Next > ere to search

Answer 1

		Amount	Working
a	Present Value	27200	40,000 * PVIF(8%, 5 year)
b	Present Value	8160	10,000* PVIF(7%, 3 Year)
c-1	Future Value	1203.32	486 *(1+.12)8
c-2	would you rather have 486 now or 1000 eight years from now	486 now	As FV of 486 is more than 1000 after 8 years
d	Future Value	85.40	60 * (1+.04)9
e	Future Value	2,17,189.33	100000 *(1+.09)9