Use future or present value techniques to solve the following problems. If you inherited $55,000 today and invested all of it in a security that paid a 7 percent rate of return, how much would you have in 20 years? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor. $_____________

Calculate your answer based on the financial calculator. $_____________________

If the average new home costs $225,000 today, how much will it cost in 12 years if the price increases by 7 percent each year? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor. $___________

Calculate your answer based on the financial calculator. $________________

You forecast that in 14 years it will cost $235,000 to provide your child a 4-year college education. Will you have enough if you take $82,000 today and invest it for the next 14 years at 6 percent? Round the answer to the nearest cent. Round FV-factor and FVA-factors to three decimal places. (Yes or No), you will have approximately $__________________

(More or less) than your estimate of $235,000.

If you can earn 9 percent, how much will you have to save each year if you want to retire in 30 years with $1 million? Round the answer to the nearest cent. Round FVA-factor to three decimal places.

Calculate your answer based on the FVA-factor. $____________________

Calculate your answer based on the financial calculator. $____________________