Problem 9-5 Future value [LO2] If you invest $9,000 today, how much will you have:

Use Appendix A as an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a. In 2 years at 9 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. In 7 years at 12 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c. In 25 years at 14 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) d. In 25 years at 14 percent (compounded semiannually)? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

input variables:

present value: 9000

a. number of years: 2 years

interest rate: 9 percent

b. number of years: 7 years

interest rate: 12 percent

c. number of years: 25 years

interest rate: 14 percent

d. number of years: 25 years

interest rate: 14 percent

a. Appendix A factor: 1.188

b. Appendix A factor: 2.211

c. Appendix A factor: 26.462

d. Appendix A factor: 29.457

find the solution

a. future value

b. future value

c. future value

d. future value

appendix A values:

a.

b.

c.

d.

Problem 9-14 Present value [LO3] Phil Goode will receive $175,000 in 50 years. His friends are very jealous of him.

If the funds are discounted back at a rate of 14 percent, what is the present value of his future "pot of gold"? Use Appendix B for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal

input variable:

future value: 175000

number of years: 50years

interest rate: 14 percent

appendix factor: 0.001

find the solution

present value:

appendix value: