Question
28)You need $24,356 at the end of 9 years, and your only investment outlet is an 11 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. Use Appendix B and Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods.
a.What single payment could be made at the beginning of the first year to achieve this objective? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Single payment made$ b.What amount could you pay at the end of each year annually for 9 years to achieve this same objective? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Amount to be paid$
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Question
27)Your grandfather has offered you a choice of one of the three following alternatives: $13,500 now; $6,500 a year for nine years; or $91,000 at the end of nine years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1.Assuming you could earn 9 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
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Question
26)Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). However, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). What is the future value of a 13-year annuity of $3,000 per period where payments come at the beginning of each period? The interest rate is 11 percent. Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. To find the future value of an annuity due when using the Appendix tables, add 1 to n and subtract 1 from the tabular value. For example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to Appendix C for n = 6 and i = 10 percent. Look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 × 6.716). (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Future value$
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Question
25)Determine the amount of money in a savings account at the end of 10 years, given an initial deposit of $10,000 and an annual interest rate of 16 percent when interest is compounded: Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods.(Do not round intermediate calculations. Round your final answers to 2 decimal places.) Future value a. Annually$ b. Semiannually$ c. Quarterly$
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