you hope to buy a car in 5 years from today. today the car cost 68,000 but you e
ID: 2620836 • Letter: Y
Question
you hope to buy a car in 5 years from today. today the car cost 68,000 but you expect the price to increase by an average of 4% per year over the next 5 years. How much will the car cost by the time you are ready to buy it.
Ul are earning a salary Jan 1, what do you anticipate your salary will be in 202 of $42,000 in 2018 and expect to receive 4% raises per annnn on ou anticipate your salary will be in 2027? 8. what js the futu vlus mene future value of$ 000 invested for 14years at 75% compounded annually? 9. Y ou hope to buy your dream car 5 years from now. Today, that car costs $68,000 but you expect the price to increase by an average of 4% per year over the next five years. How much will your dream car cost by the time you are ready to buy it? 0. Your grand mother invested a lump sum for you 25)years ago earning 6.5% interest per year over that time. Today, she gave you the proceeds of that investment which is now worth vest? 6,900. How much did she originally in 11. Asendia USA has an unfunded pension liability of $6 million that must be paid in 20 years. The relevant annual discount rate is 6.5%. What is the present value of this liability?Explanation / Answer
7) Anticipated salary in 2027 = 42000*1.04^9 = $ 59,779.10 8) FV = 5000*1.075^14 = $ 13,762.22 9) Cost of the car 5 years from now = 68000*1.04^5 = $ 82,732.40 10) Original investment = 86900/1.065^25 = $ 18,000.29 11) PV of pension liability = 6000000/1.065^20 = $ 17,02,782.17
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