Appendix 14A - Learning Case Name In three years when you graduate you would like to...

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Appendix 14A - Learning Case Name In three years when you graduate you would like to buy a new vehicle. You would like to make a cash down payment when you purchase your vehicle and have decided that you can deposit $50 per month into a savings account that will earn 6% interest. Required (3) f) How much cash will you have in your savings account three years from now when you go to purchase your new vehicle? n = I/yr = PV = PMT = FV = When you graduate you have $12,000 in student loans to repay. The loans have an annual interest rate of 3%. You must repay your loans with monthly payments you would like to pay off the loans in 3 years. and Required (4) g) How much do you need to pay each month to accomplish your goal? n = I/yr = PV = PMT = FV = After graduation you start working for a public accounting firm. You will begin your job on January 1st. As part of the firm's compensation structure they offer a yearend bonus (paid December 31st) of $5,000 if you reach your work goals. The current market interest rate is 6%. Required (5) h) What is the present value of this bonus? n= I/yr = PV = PMT = FV = Appendix 14A - Learning Case Name In three years when you graduate you would like to buy a new vehicle. You would like to make a cash down payment when you purchase your vehicle and have decided that you can deposit $50 per month into a savings account that will earn 6% interest. Required (3) f) How much cash will you have in your savings account three years from now when you go to purchase your new vehicle? n = I/yr = PV = PMT = FV = When you graduate you have $12,000 in student loans to repay. The loans have an annual interest rate of 3%. You must repay your loans with monthly payments you would like to pay off the loans in 3 years. and Required (4) g) How much do you need to pay each month to accomplish your goal? n = I/yr = PV = PMT = FV = After graduation you start working for a public accounting firm. You will begin your job on January 1st. As part of the firm's compensation structure they offer a yearend bonus (paid December 31st) of $5,000 if you reach your work goals. The current market interest rate is 6%. Required (5) h) What is the present value of this bonus? n= I/yr = PV = PMT = FV =