Financial Planning Exercise 8 Calculating present and future values

Use future or present value techniques to solve the following problems.

Starting with $12,000, how much will you have in 12 years if you can earn 15 percent on your money? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor.

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Calculate your answer based on the financial calculator.

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If you can earn only 12 percent? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor.

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Calculate your answer based on the financial calculator.

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If you inherited $70,000 today and invested all of it in a security that paid a 10 percent rate of return, how much would you have in 30 years? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor.

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Calculate your answer based on the financial calculator.

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If the average new home costs $295,000 today, how much will it cost in 15 years if the price increases by 7 percent each year? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor.

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Calculate your answer based on the financial calculator.

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You think that in 10 years it will cost $237,000 to provide your child a 4-year college education. Will you have enough if you take $84,000 today and invest it for the next 10 years at 6 percent? Round the answer to the nearest cent. Round FV-factor and FVA-factors to three decimal places. -Select-YesNoItem 9 , you will have approximately

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-Select-morelessItem 11 than your estimate of $237,000. If you start from scratch, how much will you have to save each year to have $237,000 in 10 years if you can earn a 6 percent rate of return on your investments? Calculate your answer based on the FVA-factor.

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Calculate your answer based on the financial calculator.

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If you can earn 9 percent, how much will you have to save each year if you want to retire in 30 years with $1.2 million? Round the answer to the nearest cent. Round FVA-factor to three decimal places. Calculate your answer based on the FVA-factor.

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Calculate your answer based on the financial calculator.

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You plan to have $1,400,000 in savings and investments when you retire at age 66. Assuming that you earn an average of 7 percent on this portfolio, what is the maximum annual withdrawal you can make over a 25-year period of retirement? Round the answer to the nearest cent. Round PVA-factor to three decimal places. Calculate your answer based on the PVA-factor.

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Calculate your answer based on the financial calculator.

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