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 $46,000 in three years? Annual Interest rate is 10%. b. Assume that you are saving up for a trip around the world when you graduate in three years. If you can earn 6% on your Investments, how much would you have to deposit today to have $12,000 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an Investment of $558 for ten years earning an interest of 9%. (Round your answer to 2 decimal places.) c-2. Would you rather have $558 now or $1,000 ten years from now? d. Assume that a college parking sticker today costs $68. If the cost of parking is increasing at the rate of 6% per year, how much will the college parking sticker cost in seven years? (Round your answer to 2 decimal places.) e. Assume that the average price of a new home is $114,500. If the cost of a new home is increasing at a rate of 7% per year, how much will a new home cost in eight years? (Round your answer to 2 decimal places.) 1. An Investment will pay you $7,000 in 9 years, and it also will pay you $240 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 $7,500,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $7.5 million now. Instead she will receive $375,000 at the end of the year for each of the next 20 years. If the annual Interest rate is 7%, 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 $558 now or $1,000 ten years from now? d. Future value e. Future value f. Present value g. Present value
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 $46,000 in three years? Annual Interest rate is 10%. b. Assume that you are saving up for a trip around the world when you graduate in three years. If you can earn 6% on your Investments, how much would you have to deposit today to have $12,000 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an Investment of $558 for ten years earning an interest of 9%. (Round your answer to 2 decimal places.) c-2. Would you rather have $558 now or $1,000 ten years from now? d. Assume that a college parking sticker today costs $68. If the cost of parking is increasing at the rate of 6% per year, how much will the college parking sticker cost in seven years? (Round your answer to 2 decimal places.) e. Assume that the average price of a new home is $114,500. If the cost of a new home is increasing at a rate of 7% per year, how much will a new home cost in eight years? (Round your answer to 2 decimal places.) 1. An Investment will pay you $7,000 in 9 years, and it also will pay you $240 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 $7,500,000 in the Kansas State Lottery. However, as is often the custom with lotteries, she does not actually receive the entire $7.5 million now. Instead she will receive $375,000 at the end of the year for each of the next 20 years. If the annual Interest rate is 7%, 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 $558 now or $1,000 ten years from now? d. Future value e. Future value f. Present value g. Present value
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
Problem 1PS
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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 $46,000 in three years? Annual Interest rate is 10%.
b. Assume that you are saving up for a trip around the world when you graduate in three years. If you can earn 6% on your
Investments, how much would you have to deposit today to have $12,000 when you graduate? (Round your answer to 2 decimal
places.)
c-1. Calculate the future value of an Investment of $558 for ten years earning an interest of 9%. (Round your answer to 2 decimal
places.)
c-2. Would you rather have $558 now or $1,000 ten years from now?
d. Assume that a college parking sticker today costs $68. If the cost of parking is increasing at the rate of 6% per year, how much will
the college parking sticker cost in seven years? (Round your answer to 2 decimal places.)
e. Assume that the average price of a new home is $114,500. If the cost of a new home is increasing at a rate of 7% per year, how much
will a new home cost in eight years? (Round your answer to 2 decimal places.)
f. An Investment will pay you $7,000 in 9 years, and It also will pay you $240 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 $7,500,000 in the Kansas State Lottery. However, as is often the
custom with lotteries, she does not actually receive the entire $7.5 million now. Instead she will receive $375,000 at the end of the
year for each of the next 20 years. If the annual Interest rate is 7%, 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 $558 now or $1,000 ten years from now?
d. Future value
e. Future value
f. Present value
g. Present value
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