Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of $65,000, what recommendation would you make to Aunt Tilie?China Manufàcturing Agents, Inc. is preparing a five-year plan. Today, sales are $1,000,000. If the growth rate in sales is projected to be 10 percent over the next five years, what wil the dollar amount of sales be in year five?Dan and Jia are newlyweds and have just purchased a condominium for $70,000. Since the condo is very small, they hope to move into a single-family house in 5 years. How much will their condo worth in 5 years if inflation is expected to be 8 percent?You deposit $17,000 each year for 10 years at 7%. Then you earn 9% after that. If you Jeave the money invested for another 5 years how much will you have in the 15th year?If you deposit $45,000 into an account earming 4% interest compounded quarterly, how much would you have in 5 years?How much would you pay for an investment which will be worth $16,000 in three years? Assume interest is 5%.How much could be earned in an accournit by the end of 5 years if $100,000 is deposited and interest is 4% per year, compounded continuously?Suppose you want to have S0.5 million saved by the time you reach age 30, and suppose you are 20 years old today. If you can earn 5% on your funds, how much you have to invest today to achieve your goal?If I want to withdraw $5000 at the end of 5 years and again $6000 at the end of6 years, leaving zero balance after my 6th year withdrawal. If my funds carn 5% today, how much should I deposit today to meet my future withdrawals?

Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Answered: Aunt Tillie has deposited $33,000 today…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 34P

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Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of $65,000, what recommendation would you make to Aunt Tilie?
China Manufàcturing Agents, Inc. is preparing a five-year plan. Today, sales are $1,000,000. If the growth rate in sales is projected to be 10 percent over the next five years, what wil the dollar amount of sales be in year five?
Dan and Jia are newlyweds and have just purchased a condominium for $70,000. Since the condo is very small, they hope to move into a single-family house in 5 years. How much will their condo worth in 5 years if inflation is expected to be 8 percent?
You deposit $17,000 each year for 10 years at 7%. Then you earn 9% after that. If you Jeave the money invested for another 5 years how much will you have in the 15th year?
If you deposit $45,000 into an account earming 4% interest compounded quarterly, how much would you have in 5 years?
How much would you pay for an investment which will be worth $16,000 in three years? Assume interest is 5%.
How much could be earned in an accournit by the end of 5 years if $100,000 is deposited and interest is 4% per year, compounded continuously?
Suppose you want to have S0.5 million saved by the time you reach age 30, and suppose you are 20 years old today. If you can earn 5% on your funds, how much you have to invest today to achieve your goal?
If I want to withdraw $5000 at the end of 5 years and again $6000 at the end of6 years, leaving zero balance after my 6th year withdrawal. If my funds carn 5% today, how much should I deposit today to meet my future withdrawals?

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