inancial Planning Exercise $9$

Calculating present and future values

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

Starting with $$13,000,$ how much will you have in $8$ years if you can earn $8$ 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 $4$ 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 $$85,000$ today and invested all of it in a security that paid a $10$ percent rate of return, how much would you have in $25$ 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 $$465,000$ today, how much will it cost in $13$ years if the price increases by $4$ 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 forecast that in $13$ years, it will cost $$229,000$ to provide your child a $4-$year college education. Will you have enough if you take $$78,000$ today and invest it for the next $13$ years at $5$ 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 $$-$Select$-$morelessItem $11$ than your estimate of $$229,000.$

If you start from scratch, how much will you have to save each year to have $$229,000$ in $13$ years if you can earn a $5$ 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 $35$ years with $$1\mathrm{.}2$ millions? 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 $$0\mathrm{.}9$ million in savings and investments when you retire at age $60.$ Assuming that you earn an average of $7$ percent on this portfolio, what is the maximum annual withdrawal you can make over a $30-$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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