Question John Deere sells a tractor for $200,000 which is due in 4 years. What is the present value of this one time payment if the annual interest rate is 8%? A. $147,006 B. $272,098 C. $200,000 D. $50,000 Professor Wolfe would like to go on a European vacation in 5 years and estimates she’ll need $20,000. What amount should she invest today in order to have $20,000 in 5 years assuming she will earn 4% in interest annually.A. $4,000 B. $16,439 C. Can’t Professor Wolfe figure this out for herself? D. $20,000 Prof Wolfe would like to retire today. She would like to receive $50,000 per year for the next 10 years before she starts receiving her social security. How much does she have to invest today assuming she will earn 6% interest annuallyA. $368,000 B. $500,000 C. $217,750 D. …..don’t care.
Question
John Deere sells a tractor for $200,000 which is
due in 4 years. What is the present value of this one time payment if the annual interest rate is 8%?
A.
$147,006
B.
$272,098
C.
$200,000
D.
$50,000
Professor Wolfe would like to go on a European vacation in 5 years and estimates she’ll need $20,000. What amount should she invest today in order to have $20,000 in 5 years assuming she will earn 4% in interest annually.A.
$4,000
B.
$16,439
C.
Can’t Professor Wolfe figure this out for herself?
D.
$20,000
Prof Wolfe would like to retire today. She would like to receive $50,000 per year for the next 10 years before she starts receiving her social security. How much does she have to invest today assuming she will earn 6% interest annuallyA.
$368,000
B.
$500,000
C.
$217,750
D.
…..don’t care.
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