1. Provided are links to the present and future value tables: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) 
2. 
   
3. a. How much would you have to deposit today if you wanted to have $54,000 in five years? The annual interest rate is 8%. 
4. 
   
5. b. Assume that you are saving up for a trip around the world when you graduate in two years. If you can earn 7% on your investments, how much would you have to deposit today to have $14,500 when you graduate? (Round your answer to 2 decimal places.) 
6. 
   
7. c-1. Calculate the future value of an investment of $643 for eight years earning an interest of 12%. (Round your answer to 2 decimal places.) c-2. Would you rather have $643 now or $1,000 eight years from now? 
8. 
   
9. d. Assume that a college parking sticker today costs $78. 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.) 
10. 
    
11. e. Assume that the average price of a new home is $122,000. 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.) 
12. 
    
13. f. An investment will pay you $9,500 in 10 years, and it will also pay you $290 at the end of each of the next 10 years (years 1 thru 10). If 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.) 
14. 
    
15. g. A college student is reported in the newspaper as having won $10,000,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $10 million now. 
16. 
    
17. Instead, she will receive $500,000 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 the nearest whole dollar.)

Answer rating: 100% (QA)

solution a To calculate the present value required to have 54000 in five years use the present value of 1 table and the formula for present value PV F... View the full answer