1. a. You invest $12,000 today at 9 percent per year. How much will you have...

 

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1. a. You invest $12,000 today at 9 percent per year. How much will you have after 15 years? b. What is the current value of $100,000 after 10 years if the discount rate is 12 percent? C. You invest $2,000 a year for 20 years at 11 percent. How much will you have after 20 years? 2. a. How much must Katie Wilson set aside each year to accumulate $80,000 after 15 years? The interest rate is 10 percent. b. How much must Josh Thompson repay each year for five years to pay off a $20,000 loan that he just took out? The interest rate is 8 percent. 6. Your aunt offers you a choice of $20,100 in 20 years or $870 today. If money is discounted at 17 percent, which should you choose? 7. Your uncle offers you a choice of $105,000 in 10 years or $47,000 today. If money is discounted at nine (9) percent, which should you choose? 8. Your father offers you a choice of $105,000 in 12 years or $47,000 today. a. If money is discounted at 8 percent, which should you choose? b. If money is still discounted at 8 percent, but your choice is between $105,000 in 9 years or $47,000 today, which should you choose? 9. You are going to receive $205,000 in 18 years. What is the difference in present value between using a discount rate of 12 percent versus 9 percent? 10. How much would you have to invest today to receive a. $15,000 in 8 years at 10 percent? b. $20,000 in 12 years at 13 percent? C. $6,000 each year for 100 years at 9 percent? d. $50,000 each year for 50 years at 7 percent? 11. If you invest $8,500 per period for the following number of periods, how much would you have? a. 12 years at 10 percent. b. 50 years at 9 percent. 12. You invest a single anount of $10,000 for 5 years at 10 percent. At the end of 5 years you take the proceeds and invest them for 12 years at 15 percent. How much will you have after 17 years? 1. a. You invest $12,000 today at 9 percent per year. How much will you have after 15 years? b. What is the current value of $100,000 after 10 years if the discount rate is 12 percent? C. You invest $2,000 a year for 20 years at 11 percent. How much will you have after 20 years? 2. a. How much must Katie Wilson set aside each year to accumulate $80,000 after 15 years? The interest rate is 10 percent. b. How much must Josh Thompson repay each year for five years to pay off a $20,000 loan that he just took out? The interest rate is 8 percent. 6. Your aunt offers you a choice of $20,100 in 20 years or $870 today. If money is discounted at 17 percent, which should you choose? 7. Your uncle offers you a choice of $105,000 in 10 years or $47,000 today. If money is discounted at nine (9) percent, which should you choose? 8. Your father offers you a choice of $105,000 in 12 years or $47,000 today. a. If money is discounted at 8 percent, which should you choose? b. If money is still discounted at 8 percent, but your choice is between $105,000 in 9 years or $47,000 today, which should you choose? 9. You are going to receive $205,000 in 18 years. What is the difference in present value between using a discount rate of 12 percent versus 9 percent? 10. How much would you have to invest today to receive a. $15,000 in 8 years at 10 percent? b. $20,000 in 12 years at 13 percent? C. $6,000 each year for 100 years at 9 percent? d. $50,000 each year for 50 years at 7 percent? 11. If you invest $8,500 per period for the following number of periods, how much would you have? a. 12 years at 10 percent. b. 50 years at 9 percent. 12. You invest a single anount of $10,000 for 5 years at 10 percent. At the end of 5 years you take the proceeds and invest them for 12 years at 15 percent. How much will you have after 17 years?

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1 a You invest 12000 today at 9 percent per year How much will you have after 15 years Answer To solve this problem we apply the following formula Future Value current Value 1 rn where R interest rate ... View the full answer