How much would you have to deposit today if you wanted to have $58,000 in five...
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How much would you have to deposit today if you wanted to have $58,000 in five years? Annual interest rate is 8%. 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 $16,000 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an investment of $702 for eight years earning an interest of 12%. (Round your answer to 2 decimal places.) c-2. Would you rather have $702 now or $1,800 eight years from now? d. Assume that a college parking sticker today costs $84. 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 $126,500. 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 $11,000 in 9 years, and it also will pay you $320 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 $11,500,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $11.5 million now. Instead she will receive $575,000 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's amount) that she won? (ignore taxes). (Round your answer to nearest whole dollar.) a. Present value b. Present value c-1. Future value c-2. Would you rather have $702 now or $1,800 eight years from now? d. Future value e. Future value f. Present value g. Present value How much would you have to deposit today if you wanted to have $58,000 in five years? Annual interest rate is 8%. 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 $16,000 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an investment of $702 for eight years earning an interest of 12%. (Round your answer to 2 decimal places.) c-2. Would you rather have $702 now or $1,800 eight years from now? d. Assume that a college parking sticker today costs $84. 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 $126,500. 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 $11,000 in 9 years, and it also will pay you $320 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 $11,500,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $11.5 million now. Instead she will receive $575,000 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's amount) that she won? (ignore taxes). (Round your answer to nearest whole dollar.) a. Present value b. Present value c-1. Future value c-2. Would you rather have $702 now or $1,800 eight years from now? d. Future value e. Future value f. Present value g. Present value
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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