Exercise B$-18($Algo$)$ Practical applications of the time value of money LO P$1,$ P$2,$ P$3,$ P$4$

Provided are links to the present and future value tables: $($PV of $$1,$ FV of $$1,$ PVA of $$1,$ and FVA of $$1)($Use appropriate factor$($s$)$ 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 $$49,000$ in five years? Annual interest rate is $8\%.$

b$.$ Assume that you are saving up for a trip around the world when you graduate in three years. If you can earn $7\%$ on your

investments, how much would you have to deposit today to have $$13,000$ when you graduate? $($Round your answer to $2$ decimal

places.$)$

c$-1.$ Calculate the future value of an investment of $$594$ for eight years earning an interest of $12\%.($Round your answer to $2$ decimal

places.$)$

c$-2.$ Would you rather have $$594$ now or $$1,000$ eight years from now?

d$.$ Assume that a college parking sticker today costs $$72.$ If the cost of parking is increasing at the rate of $4\%$ per year, how much will

the college parking sticker cost in nine years? $($Round your answer to $2$ decimal places.$)$

e$.$ Assume that the average price of a new home is $$117,500.$ If the cost of a new home is increasing at a rate of $9\%$ per year, how much

will a new home cost in nine years? $($Round your answer to $2$ decimal places.$)$

f$.$ An investment will pay you $$8,000$ in $9$ years, and it also will pay you $$260$ 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 $$8,500,000$ in the Kansas State Lottery. However, as is often the

custom with lotteries, she does not actually receive the entire $$8\mathrm{.}5$ million now. Instead she will receive $$425,000$ at the end of the

year for each of the next $20$ years. If the annual interest rate is $5\%,$ what is the present value $($today$\text{'}$s amount$)$ that she won? $($ignore

taxes$).($Round your answer to nearest whole dollar.$)$ Will leave rating if you put data in easy to read boxes