E-1 You invest a single amount of $16,500 for 6 years at 13 percent. At the end of 6 years you take the proceeds and invest them for 12 years at 15

E-1

You invest a single amount of $16,500 for 6 years at 13 percent. At the end of 6 years you take the proceeds and invest them for 12 years at 15 percent.

How much will you have after 18 years? Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

 Future Value =

E-2

The Clearinghouse Sweepstakes has just informed you that you have won $1 million. The amount is to be paid out at the rate of $58,000 a year for the next 15 years.

With a discount rate of 8 percent, what is the present value of your winnings? Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

  Present Value=

E-3

Christy Reed made a $3,200 deposit in her savings account on her 21st birthday, and she has made another $3,200 deposit on every birthday since then. Her account earns 8 percent compounded annually.

How much will she have in the account after she makes the deposit on her 32nd birthday? Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

  Future Value=

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Assignment Solutions
Assignment Solutions