apliar FINC 5331 Fall 2015 (8 week SUBISH NAIR Home Grades Personalized Reviews
ID: 2708971 • Letter: A
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apliar FINC 5331 Fall 2015 (8 week SUBISH NAIR Home Grades Personalized Reviews Discussion Course Materials Texas Instruments Financial Calculator II Graded Assignment l Back to Assignment Due Wednesday 11.04.15 at 05:00 PM Keep the Highest: /2 Attempts 1. Meeting a future obligation Aa Aa E Kristine needs to make some house repairs in three years that will cost $9,000. She has some money in an account earning 9% annual interest. How much money needs to be in the account today so she will have enough to pay for the repairs? O $6,950 O $6,351 O $7,347 O 6,717 $6,417 O Unfortunately, Kristine doesn't have enough money in her account right now. She needs to make additional contributions at the end of each of the next three years to be able to pay for the repairs. Her account currently has $5,000, which, along with her additional contributions is expected to continue earning 9% annual interest. If she makes equal contributions each year, how large must each contribution be for Kristine to have $9,000 after three years? O $588 O $487 $1,085 O $1,203 O O $770 Flash Player WIN 19,0,0,226 004 5 Ap Grade it Now Save & Continue 2013 Cengage Learning except as noted. All rights reserved Copyright Notices Terms of Use Accessibility y Not Customer Support Sign Out Suggestions Session 55:40 Suggestions Session 55:40Explanation / Answer
Details Amount Future Value of repair amount 9000 Annual Interest 9% Present Value of 9000 as of today 9000*1.09^-3 Amount to be invested Today 6,950 Details Amount Details Amount Future Value of repair amount 9,000.00 Less Future Value Cash in current account -6,475.15 Remaining Portion 2,524.86 Annual Interest 0.09 Annuity for 9% for 3 years 3.28 Annual Contrubution to be made 770.22
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