MC algo 5-17 Calculating Present ValuesYou want to have $77,000 in 18 years to help your child attend college. If you can earn an annual interest rate of 3.3 percent, how much will you have todeposit today?Multiple Choice$42,922.49O $37,357.48$41,551.30$39,349.42$24716 07

Present Value is the current price of future value which will be received in near future at some…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 5-13 (Algo) Present value; ordinary annuity (LO 5-8) Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: 1. Pay $32,000 today for the car. 2. Pay $3,400 at the end of each quarter for three years. Required: 1-a. Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value. 1-b. Which option gives him the lower cost? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value. Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Option 1 Option 2 Present Value Req 1A Req 1B >
Excel Online Activity: Required annuity payments 1 Question 1 0/10 Submit HVideo Excel Online Structured Activity: Required annuity payments Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $60,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 4%. He currently has $70,000 saved, and he expects to earn 9% annually on his savings. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Qoen spreadsheet How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal? Do…
K Part 1 of 3 Future value with periodic rates. Matt Johnson delivers newspapers and is putting away $35 at the end of each quarter from his paper route collections. Matt is 11 years old and will use the money when he goes to college in 7 years. What will be the value of Matt's account in 7 years with his quarterly payments if he is earning 4% (APR), 9% (APR), or 12.5% (APR)? CATE Save What will be the value of Matt's account in 7 years with his quarterly payments if he is earning 4% (APR)? (Round to the nearest cent.)
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Question 5 of 5 2 Points Millet wants to provide a P200,000 graduation gift for her daughter Mae who is now 16 years old. She would like the fund to be available by the time she is 20 years of age. She decides on an investment that pays 10% compounded quarterly. How large must the deposit be? Select the correct response: Millet must deposit at least P136,000.00. Millet must deposit at least P135,000.00. Millet must deposit at least P138,000.00. Millet must deposit at least P137,000.00. ( Previous Continue >
Question 11 Find the monthly house payment necessary to amortize the following loan. In order to purchase a home, a family borrows $70,000 at 12% for 15 years. What is the monthly payment? $840.12
QUESTION 31 After he retires, Dewey would like to be able to withdraw $1,250 every week for a total of 30 years after he retires. If the account earns 5% interest, how much will Dewey need in his retirement account when he retires? Give your answer to the nearest dollar. Summarize the information provided, stating the interest rate in a decimal form. d = r = k = N = Identify the formula you will use to solve by writing the letter of the formula here: A. A = Po(1 + rt) B. PN = Po(1 + /k) Nk C. PN = d((1 + /k)Nk – 1) ("/k) %3D D. Po = d(1 - (1 +/k¬Nk) + ("/k) Solve the problem and give your answer here:
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Question 5 of 10 You plan to save money for a down payment of $37,000 to purchase an apartment. You can only afford to save $1,250 at the end of every quarter into an account that earns interest at 3.71% compounded annually. How long will it take you to save the planned amount? o years o months Express the answer in years and months, rounded to the next payment period SUBMIT QUESTION k SU 1 O 0 SAVE PROGRESS
Exercise C-8 Calculate the present value of an annuity (LOC-3) Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: Pay $29,500 for the car today. Pay $2,900 at the end of each quarter for three years. 1-a. Assuming Denzel uses a discount rate of 8% (or 2% quarterly), calculate the present value. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) 1-b. Which option gives him the lower cost?multiple choice Option 1 Option 2

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MC algo 5-17 Calculating Present Values You want to have $77,000 in 18 years to help your child attend college. If you can earn an annual interest rate of 3.3 percent, how much will you have to deposit today? Multiple Choice $42,922.49 $37,357.48 $41,551.30 $39,349.42