Question: Provided are links to the present and future value tables: ( P V of $ 1 , F V of $ 1 , PVA of

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.)
a. How much would you have to deposit today if you wanted to have
$43,000 in four years? Annual interest rate is 9%.
b. Assume that you are saving up for a trip around the world when you
graduate in three years. If you can earn 8% on your investments, how
much would you have to deposit today to have $11,000 when you
graduate? (Round your answer to 2 decimal places.)
c-1. Calculate the future value of an investment of $522 for nine years
earning an interest of 10%.(Round your answer to 2 decimal places.)
c-2. Would you rather have $522 now or $1,000 nine years from now?
d. Assume that a college parking sticker today costs $64. If the cost of
parking is increasing at the rate of 5% per year, how much will the
college parking sticker cost in eight years? (Round your answer to 2
decimal places.)
e. Assume that the average price of a new home is $111,500. If the cost
of a new home is increasing at a rate of 8% per year, how much will a
new home cost in ten years? (Round your answer to 2 decimal places.)
f. An investment will pay you $6,000 in 9 years, and it also will pay you
$220 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
$6,500,000 in the Kansas State Lottery. However, as is often the
custom with lotteries, she does not actually receive the entire $6.5
million now. Instead she will receive $325,000 at the end of the year for
each of the next 20 years. If the annual interest rate is 6%, what is the
present value (today's amount) that she won? (ignore taxes).(Round
your answer to nearest whole dollar.)
 Provided are links to the present and future value tables: (PV

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!