Question 7 (2 points)

Pete Morton is planning to go to graduate school in a program of study that will take 4 years. Pete wants to have $22600 available each year for various school and living expenses. If he earns 4 percent on his money, how much must be deposit at the start of his studies to be able to withdraw $22600 a year for 4 years?

Use the appropriate Time Value of Money table [Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit 1-D]

(Round your answer to the nearest whole number. Do not include the comma, period, and "$" sign in your response.)

Your Answer:

Question 7 options:

Answer

Question 8 (2 points)

Carla Lopez deposits $12410 a year into her retirement account. If these funds have an average earning of 4 percent over the 13 years until her retirement, what will be the value of her retirement account?

Use the appropriate Time Value of Money table [Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit 1-D]

(Round your answer to the nearest whole number. Do not include the comma, period, and "$" sign in your response.)

Your Answer:

Question 8 options:

Answer

Question 9 (2 points)

If a person spends $17 a week on coffee (52 weeks in a year), what would be the future value of that amount over 16 years if the funds were deposited in an account earning 7 percent?

Use the appropriate Time Value of Money table [Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit 1-D]

(Round your answer to the nearest whole number. Do not include the comma, period, and "$" sign in your response.)

Your Answer:

Question 9 options:

Answer

Chapter 1 LO 1.3

Question 10 (2 points)

Question 10 options:

A financial company that advertises on television will pay you $55,000 now for annual payments of $9,500 that you are expected to receive for a legal settlement over the next 9 years. Assume you estimate the time value of money at 12 percent.

Use the appropriate time value of money table [Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, OR Exhibit 1-D].

(a) What is the present value?