Connect Solved: Kelly Malon\" pla × \\Walmart . Statistics & Fa x Secure https/

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Connect Solved: Kelly Malon" pla × Walmart . Statistics & Fa x Secure https/ d. Assume that a college parkdng sticker todey cots $86 If the cost of parking is increasing at the rate of 6% per year, how much wil the college parking stcker cost in seven years? (Round your answer to 2 declmal places.) e. Assume that the avere e rice of a new home is $128 000. r new homes are ncresn at a rate org% per yea, how much wila new home cost in sev as? (Round your answer to 2 decimel pleces) t An investment will pay you Sm.500 in 10 years, and r will also psy you $230 at the end of each of the next 10 calculations and fneli answer to the nearest whole doller) ne is 6% how much would you be wing to pay todby for this type of investment? Round your intermedlete years (years 1 tnu 10) i 9 A college custom with lomenes she does not actubily rec year for pecn ofthe next 20 yearse annual-terest aRound your answer to neerest wihole delar student s reponed in the nenspaper as having won $12 000000 in he Kansas State Lottery However, as is ofen the ceve sne entire S120mittion now inssead she ws receive $600.000 at the end of tne '00e is 7% what is the present value nodeys anonf) thst she won? Ogore ) Type here to search

Explanation / Answer

d:

Future value of money: future value of a given sum of money is calculated using the below formula:

Parking sticker will cost $129.31 in seven years from today.

e

Future value of money is calculated in the same manner as above:

Home will cost $219,369.51 in seven years

f

Present value of future cash flows:

The present investment has two streams of cash flows one is a lumpsum payment at the end of 10 years and another is an annuity cash inflow for 10 years. Present value of investment is the present value of lumpsum payment to be received after 10 years plus the present value of annuity.

Present value of lumpsum payment is:

Present value of annuity payment is:

Total present value of investment today is  $ 8,850.37

g

The series of payments here represents an annuity payment. and the present value of annuity is calculated as follows:

Present value of annual payments is $6,356,408.55

*Hope the above explanation helps, please comment if further explanation is required. Your rating is appreciated*

Future value FV= PV * (1+r)^N Where as: Present value PV=                                 86 Rate of interest r= 6.00% Number of years N=                                   7 Future value FV= 86 *(1+0.06)^7 FV=                         129.31

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