DUE IN A FEW HOURS

What is the present value of $5,000 to be received in 7 years at an interest rate of 7%? 6. A loaf of bread today costs $1.28. If grocery prices are going up at the rate of 8% per year, how much will a loaf of bread cost in 6 years? 7. At 8%, how long would it take to triple your money? [Hint: Choose a present value (eg, S100) and a future value (e.g., $300) that "fit" the problem. Solve for the factor $100-$300*pvfactor pvfactor = 0.333 In the table, look down the l = 8% column and find 0.333. The factor for n=14 is 0.34 and for n=15 is 0.315 Therefore, the time required is between 14 and 15 years (closer to 14).] 8. At an interest rate of 12%, how long would it take a sum of money to double? 9. You can buy a parcel of real estate today that you estimate will bring $15,000 in 9 years Assuming your money can earn 9%, how much would you be willing to pay for the property? 10. An insurance company is willing to settle a dispute with you. They will pay you $7,000 per year for the next 8 years, or one lump sum right now. Assuming you can earn 6% on your investments, how much would you be wling to accept? 11. You currently receive $10,000 per year on a contract. You expect it to run another 7 years. Someone wants to buy the contract from you. If you can earn 12% on other investments of this quality, how much would you be willing to sell the contract for