Your grandfather gave you a stamp originally issued in 1955, that he bought for 20 cents in
Question:
2. Your significant other's parents agree to pay half the cost of a wedding when you graduate from BU. You will graduate two years from today. You have $5,000 to invest and can earn 8.5% annually on your invested funds. If they will match the amount of money you have in 2 years, what is the most you can spend on the wedding?
3. What is the future value of $15,000 invested today, if you earn 10% annually return compounded monthly for five years?
5. Simpleton Bank pays 5% simple interest on its savings account balances, while Mega-Complex Bank pays 4% interest compounded semi-annually. If you decide to save $10,000 in each bank, how much interest will you have earned in total after 5 years?
6-It will take you how long to grow your $4,000 investment in your local savings account to $32,000 to buy the RV of your dreams? Assuming you earn 3.5% interest annually on your savings account.
Use the following information to answer question 7:
Year | Cash Flow |
0 | 100 |
1 | 400 |
2 | 400 |
3 | 400 |
4 | 500 |
5 | 500 |
6 | 500 |
7 | 500 |
8 | 600 |
7. Using a discount rate of 10%, what is the present value of the above cash flow stream.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill