Question: does anyone know how to do this question?? its mangerial accounting and itd all one question its just the tables. thank uuuu these are all









Exercise B-18 (Algo) Practical applications of the time value of money LO P1, P2, P3, P4 Provided are links to the present and future value tables: (PV of \$1, FV of \$1. PVA of \$1, and FVA of \$1) (Use approprlate 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 $64,000 in three years? Annual interest rate is 10%. b. Assume that you are saving up for a trip around the world when you graduate in three years. If you can earn 6% on your investments, how much would you have to deposit today to have $18,000 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an investment of $774 for ten years earning an interest of 9%. (Round your answer to 2 decimal places.) c-2. Would you rather have $774 now or $1,800 ten years from now? d. Assume that a college parking sticker today costs $92. If the cost of parking is increasing at the rate of 6% per year, how much will the college parking sticker cost in seven years? (Round your answer to 2 decimal places.) e. Assume that the average price of a new home is $132,500. If the cost of a new home is increasing at a rate of 7% per year, how much will a new home cost in eight years? (Round your answer to 2 decimal places.) f. An investment will pay you $13,000 in 9 years, and it also will pay you $360 at the end of each of the next 9 years (years 1 through 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.) g. A college student is reported in the newspaper as having won $13,500,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire \$1s.5 million now. Instead she will rec of the year for each of the next 20 years. If the annual interest rate is 7%, what is the present value (todi won? (ignore taxes). (Round your answer to nearest whole dollar.) Table B. A6 Future Value of an Annuity of 1 f=1(1+i)n1vi Wsed to calculate she furure value of a series of equal paymens made at the end of each period. For example; What is the firture value of St,ooo per year for 6 jears assuming at ansual interest rate of 8%. For (n=6,1=85), the FV factor is 7.3359.$4.000 per year for 6 years accumulates so $29.343.60 (\$4.000 7.3359). Tahle B 3 P Present Value of un Annuity of I p=[11/(1+i)n]/i "Used to calculare che present walue of a series of equat puyments made ar me end of each period. For etample; What is the present walhe of s2 ooo per year for to years Table B. 2t Future Value of 1 f=(1+i)n Used to compute the futare value of a known present amount. For example: What is the accimalated value of 53,000 invested foday at 8% compounded yuarieriy for 5 (4859) Table B.1* Present Valee of 1 p=1/(1+i)n "Used to compate the present value of a known ficture amount. For example: How much would you need to invest today at 10 ho conipownded semiannumliy to accimmulahe $5,000 in 6 years from foday? Using the factors of n=12 and i=5% ( 12 semiannual periods and a semiantual rate of 5% ), the forfor is 055668 , Your woind need to imtresf $2,784 today ($5,0000.5568) Exercise B-18 (Algo) Practical applications of the time value of money LO P1, P2, P3, P4 Provided are links to the present and future value tables: (PV of \$1, FV of \$1. PVA of \$1, and FVA of \$1) (Use approprlate 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 $64,000 in three years? Annual interest rate is 10%. b. Assume that you are saving up for a trip around the world when you graduate in three years. If you can earn 6% on your investments, how much would you have to deposit today to have $18,000 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an investment of $774 for ten years earning an interest of 9%. (Round your answer to 2 decimal places.) c-2. Would you rather have $774 now or $1,800 ten years from now? d. Assume that a college parking sticker today costs $92. If the cost of parking is increasing at the rate of 6% per year, how much will the college parking sticker cost in seven years? (Round your answer to 2 decimal places.) e. Assume that the average price of a new home is $132,500. If the cost of a new home is increasing at a rate of 7% per year, how much will a new home cost in eight years? (Round your answer to 2 decimal places.) f. An investment will pay you $13,000 in 9 years, and it also will pay you $360 at the end of each of the next 9 years (years 1 through 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.) g. A college student is reported in the newspaper as having won $13,500,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire \$1s.5 million now. Instead she will rec of the year for each of the next 20 years. If the annual interest rate is 7%, what is the present value (todi won? (ignore taxes). (Round your answer to nearest whole dollar.) Table B. A6 Future Value of an Annuity of 1 f=1(1+i)n1vi Wsed to calculate she furure value of a series of equal paymens made at the end of each period. For example; What is the firture value of St,ooo per year for 6 jears assuming at ansual interest rate of 8%. For (n=6,1=85), the FV factor is 7.3359.$4.000 per year for 6 years accumulates so $29.343.60 (\$4.000 7.3359). Tahle B 3 P Present Value of un Annuity of I p=[11/(1+i)n]/i "Used to calculare che present walue of a series of equat puyments made ar me end of each period. For etample; What is the present walhe of s2 ooo per year for to years Table B. 2t Future Value of 1 f=(1+i)n Used to compute the futare value of a known present amount. For example: What is the accimalated value of 53,000 invested foday at 8% compounded yuarieriy for 5 (4859) Table B.1* Present Valee of 1 p=1/(1+i)n "Used to compate the present value of a known ficture amount. For example: How much would you need to invest today at 10 ho conipownded semiannumliy to accimmulahe $5,000 in 6 years from foday? Using the factors of n=12 and i=5% ( 12 semiannual periods and a semiantual rate of 5% ), the forfor is 055668 , Your woind need to imtresf $2,784 today ($5,0000.5568)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
