Hi could you please do all parts to this question? a. How much would you have to

Question

Hi could you please do all parts to this question?

a. How much would you have to deposit today if you wanted to have $52,000 in four years? Annual interest rate is 9%. (PV of $1, FV of $1. PVA of $1, and FVA of $) (Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) Present value 37 b. Assume that you are saving up for a trip around the world when you graduate in three years. If you can earn 8% on your investments, how much would you have to deposit today to have $14,000 when you graduate? (Round your answer to 2 decimal places.) Present value c-1. Calculate the future value of an investment of $630 for ten years earning an interest of 9%. (Round your answer to 2 decimal places.) Future value

Explanation / Answer

Note: There are more than 4 parts of this question so as per rule I am answering first 4 parts.

(a).

Present value will be $36838.11 (Approx.)

Explanation;

Present value = Future value / ( 1 + Interest rate)n

Now let’s put the values in the formula;

Present value = $52000 / (1 + .09)4

Present value = $36838.11 (Approx.)

(b).

Present value will be $11113.65 (Approx.)

Explanation;

Present value = Future value / ( 1 + Interest rate)n

Now let’s put the values in the formula;

Present value = $14000 / (1 + .08)3

Present value = $11113.65 (Approx.)

(c - 1).

Future value will be $1491.44 (Approx.)

Explanation;

Future value = Present value * ( 1 + Interest rate)n

Now let’s put the values in the formula;

Future value = $630 * (1 + .09)10

Future value = $1491.44 (Approx.)

(c - 2).

Answer will be (Now)

Explanation;

Because future value of $630 will be $1491.44 after 10 years hence $1000 after 10 years will not be a good option because it will generate a loss of ($1491.44 – $1000) = $491.44.

That is why receiving $630 now is good option.

(d).

Future value will be $112.29 (Approx.)

Explanation;

Future value = Present value * ( 1 + Interest rate)n

Now let’s put the values in the formula;

Future value = $76 * (1 + .05)8

Future value = $112.29 (Approx.)

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