Provided are links to the present and future value tables: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) a. How much would you have to deposit today if you wanted to have $43,000 in four years? Annual interest rate is 9%. b. Assume that you are saving up for a trip around the world when you graduate in three years. If you can earn 8% on your investments, how much would you have to deposit today to have $11,000 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an investment of $522 for nine years earning an interest of 10%. (Round your answer to 2 decimal places.)
Provided are links to the present and future value tables: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) a. How much would you have to deposit today if you wanted to have $43,000 in four years? Annual interest rate is 9%. b. Assume that you are saving up for a trip around the world when you graduate in three years. If you can earn 8% on your investments, how much would you have to deposit today to have $11,000 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an investment of $522 for nine years earning an interest of 10%. (Round your answer to 2 decimal places.)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question
Raghubhai

Transcribed Image Text:Provided are links to the present and future value tables: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from
the tables provided. Round your answer to the nearest whole dollar.)
a. How much would you have to deposit today if you wanted to have $43,000 in four years? Annual interest rate is 9%.
b. Assume that you are saving up for a trip around the world when you graduate in three years. If you can earn 8% on your
investments, how much would you have to deposit today to have $11,000 when you graduate? (Round your answer to 2 decimal
places.)
c-1. Calculate the future value of an investment of $522 for nine years earning an interest of 10%. (Round your answer to 2 decimal
places.)
c-2. Would you rather have $522 now or $1,000 nine years from now?
d. Assume that a college parking sticker today costs $64. If the cost of parking is increasing at the rate of 5% per year, how much will
the college parking sticker cost in eight years? (Round your answer to 2 decimal places.)
e. Assume that the average price of a new home is $111,500. If the cost of a new home is increasing at a rate of 8% per year, how much
will a new home cost in ten years? (Round your answer to 2 decimal places.)
f. An investment will pay you $6,000 in 9 years, and it also will pay you $220 at the end of each of the next 9 years (years 1 through 9).
If the annual interest rate is 5%, how much would you be willing to pay today for this type of investment? (Round your intermediate
calculations and final answer to the nearest whole dollar.)
g. A college student is reported in the newspaper as having won $6,500,000 in the Kansas State Lottery. However, as is often the
custom with lotteries, she does not actually receive the entire $6.5 million now. Instead she will receive $325,000 at the end of the
year for each of the next 20 years. If the annual interest rate is 6%, what is the present value (today's amount) that she won? (ignore
taxes). (Round your answer to nearest whole dollar.)
a. Present value
b. Present value
c-1. Future value
c-2. Would you rather have $522 now or $1,000 nine years from now?
d. Future value
e. Future value
f. Present value
g. Present value
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