A B t D= D F Required: a. How much would you have to deposit today if you wanted to have $60,000 in four years? Annual interest rate is 996. \begin{tabular}{|r|r|r|} \hline Future 5 & Interest rate & Pears \\ \hline 560,000 & 9% & 4 \\ \hline \end{tabular} Presentivalue \begin{tabular}{l} b. Assume that youlare saving up for a trip around the world when you graduate in two years. If you can earn 8% Interest rate Future 5 | Years \\ on your investments, how much would you have to deposit today to have $15,000 when you graduate? \\ \hline 15,000 \end{tabular} 6-1. Calculate the future value of an investment of $463 for 10 years eaming an interest of 9%. \begin{tabular}{|r|r|r|} \hline Investment & Years & Interest rate \\ \hline$463 & 10 & 996 \\ \hline \end{tabular} Future value c-2. Would you rather have $463 now or $1,000 ten years from now? Would you rather have $463 now or $1,000 ten years from now? d. Assume that a college parking sticker today costs $90. If the cost of parking is increasing at the rate of 5% per year, how much will the college parking sticker cost in eight years? \begin{tabular}{|r|r|r|} \hline Current \$ & Interest rate & Years \\ \hline$90 & 5% & 8 \\ \hline \end{tabular} Future value e. Assume that the average price of a new home is $158,500. If the cost of a new home is increasing at a rate of 10% per year, how much will a new home cost in eight years? \begin{tabular}{|r|r|r|} \hline Current \$ & Interest rate & Years \\ \hline$158,500 & 10% & 8 \\ \hline \end{tabular} Future value f. An investment will pay you $10,000 in 10 years, and it also will pay you $400 at the end of each Present value g. A college student is reported in the newspaper as having won 510,000,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire 510 million now. Instead she will receive $500,000 at the end of the year for each of the next 20 years. 45 if the annual interest rate is 6%, what is the present value (today's amount) that she won? (Ignore 46 taxes.) \begin{tabular}{|l|l|r|} \hline Annual $ & Years & Interest rate \\ \hline$500,000 & 20 & 6% \\ \hline \end{tabular} Present value A Present Value of $1 Future Value of $1 A Future Value of Annuity of $1 B Present Value of Annuity of $1 Qraded Work IMPORTANT: Answer grading policy For an answer to be graded as correct, you must use an Excel formula: 1. Begin each formula with an = sign. 2. Reference cells, instead of entering values. Example: =B3+C3 TABLE 2 Fresent Value of $1 A B t D= D F Required: a. How much would you have to deposit today if you wanted to have $60,000 in four years? Annual interest rate is 996. \begin{tabular}{|r|r|r|} \hline Future 5 & Interest rate & Pears \\ \hline 560,000 & 9% & 4 \\ \hline \end{tabular} Presentivalue \begin{tabular}{l} b. Assume that youlare saving up for a trip around the world when you graduate in two years. If you can earn 8% Interest rate Future 5 | Years \\ on your investments, how much would you have to deposit today to have $15,000 when you graduate? \\ \hline 15,000 \end{tabular} 6-1. Calculate the future value of an investment of $463 for 10 years eaming an interest of 9%. \begin{tabular}{|r|r|r|} \hline Investment & Years & Interest rate \\ \hline$463 & 10 & 996 \\ \hline \end{tabular} Future value c-2. Would you rather have $463 now or $1,000 ten years from now? Would you rather have $463 now or $1,000 ten years from now? d. Assume that a college parking sticker today costs $90. If the cost of parking is increasing at the rate of 5% per year, how much will the college parking sticker cost in eight years? \begin{tabular}{|r|r|r|} \hline Current \$ & Interest rate & Years \\ \hline$90 & 5% & 8 \\ \hline \end{tabular} Future value e. Assume that the average price of a new home is $158,500. If the cost of a new home is increasing at a rate of 10% per year, how much will a new home cost in eight years? \begin{tabular}{|r|r|r|} \hline Current \$ & Interest rate & Years \\ \hline$158,500 & 10% & 8 \\ \hline \end{tabular} Future value f. An investment will pay you $10,000 in 10 years, and it also will pay you $400 at the end of each Present value g. A college student is reported in the newspaper as having won 510,000,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire 510 million now. Instead she will receive $500,000 at the end of the year for each of the next 20 years. 45 if the annual interest rate is 6%, what is the present value (today's amount) that she won? (Ignore 46 taxes.) \begin{tabular}{|l|l|r|} \hline Annual $ & Years & Interest rate \\ \hline$500,000 & 20 & 6% \\ \hline \end{tabular} Present value A Present Value of $1 Future Value of $1 A Future Value of Annuity of $1 B Present Value of Annuity of $1 Qraded Work IMPORTANT: Answer grading policy For an answer to be graded as correct, you must use an Excel formula: 1. Begin each formula with an = sign. 2. Reference cells, instead of entering values. Example: =B3+C3 TABLE 2 Fresent Value of $1