a. The cost of a new automobile is $10,900. If the interest rate is 4%, how much would you have to set aside now to provide thi sum in four years? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. You have to pay $11,000 a year in school fees at the end of each of the next five years. If the interest rate is 7%, how much do you need to set aside today to cover these bills? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. You have invested $55,000 at 7%. After paying the above school fees, how much would remain at the end of the five years? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. X Answer is not complete. S 9,317.37 a. Present value b. Present value c. Future value $ 13,882 12✔
a. The cost of a new automobile is $10,900. If the interest rate is 4%, how much would you have to set aside now to provide thi sum in four years? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. You have to pay $11,000 a year in school fees at the end of each of the next five years. If the interest rate is 7%, how much do you need to set aside today to cover these bills? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. You have invested $55,000 at 7%. After paying the above school fees, how much would remain at the end of the five years? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. X Answer is not complete. S 9,317.37 a. Present value b. Present value c. Future value $ 13,882 12✔
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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