Question: please explain clearly. please do it well and clearly so i can understand. Exercise B-18 Practical applications of the time value of money LO P1,
Exercise B-18 Practical applications of the time value of money LO P1, P2, P3, P4 Provided are links to the present and future value tables PVS). Fy of S1, PVA.SIand EVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar) ok a. How much would you have to deposit today if you wanted to have $51,000 in three years? Annual Interest rate is 10% b. Assume that you are saving up for a trip around the world when you graduate in two years. If you can earn 6% on your investments, how much would you have to deposit today to have $13,500 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an investment of $607 for ten years earning an interest of 9% (Round your answer to 2 decimal places.) c-2. Would you rather have $607 now or $1000 ten years from now? d. Assume that a college parking sticker today costs $74. If the cost of parking is increasing at the rate of 6% per year how much will the college parking sticker cost in seven years? (Round your answer to 2 decimal places.) e. Assume that the average price of a new home is $119,000. If the cost of a new home is increasing at a rate of 7% per year, how much will a new home cost in ten years? (Round your answer to 2 decimal places.) 1. An investment will pay you $8,500 in 10 years, and it will also pay you $270 at the end of each of the next 10 years years thru 10. the annual interest rate is 6%, 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) 9. A college student is reported in the newspaper as having won $9,000,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $9 million now. Instead she will receive $450,000 at the end of the year for each of the next 20 years. If the annual interest rate is 7%, what is the present value today's amount that she won? Ugnore taxes. (Round your answer to nearest whole dollar.) int ences Present value Present value 0-1. Future value 0-2 Would you rather have $607 now or $1,000 ten years from now? d Future value e Future value Present value lo Present value
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