How much would you have to invest today to receive: Use Appendix B or Appendix D

Question

How much would you have to invest today to receive: Use Appendix B or Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

$15,000 in 10 years at 14 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

$19,500 in 20 years at 15 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

$7,900 each year for 19 years at 12 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

$54,000 each year for 50 years at 10 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

$

The last two answers are not 917.24 for C and 460 for D

$15,000 in 10 years at 14 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Explanation / Answer

A) 15,000 n = 10 years, r = 14%

= 15,000/ (1+14%)^10

= $ 4,046.16

B)

19,500 n = 20 years, r = 15%

= 19,500/ (1+15%)^20

= $ 1,191.46

C)

$7,900 each year for 19 years at 12 percent

= 7,900 * (1-(1+12%)^-19)/12%

= 7,900 * 7.37

= $ 58,189.64

D) $54,000 each year for 50 years at 10 percent

= 54,000 * (1-(1+10%)^-50)/10%

= 54,000 * 9.91

= $ 535,399.98

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