Wylie has been offered the choice of receiving $4,700 today or an agreed-upon amount in 1 year. While negotiating the future amount, Wylie notes that he would be willing to take no less than $5,300 if he has to wait a year. What is his TVOM in %?
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- Kym plans to deposit $130 in an account at the end of each month for the next three (3) years so she can take a trip. If Kym's opportunity cost is 9 percent compounded monthly, how much will she have in the account in three years? Do not round intermediate calculations. Round your answer to the nearest cent. How much will be in the account if the deposits are made at the beginning of each month? Do not round intermediate calculations. Round your answer to the nearest cent.Sue plans to save $4899, $0, and $5624 at the end of Years 1 to 3, respectively. What will her investment account be worth at the end of the Year 3 if she earns an annual rate of 5.55 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)You have 30 years left until retirement and want to retire with $2.6 million. Your salary is paid annually, and you will receive $76,000 at the end of the current year. Your salary will increase at 3 percent per year, and you can earn a return of 9 percent on the money you invest. If you save a constant percentage of your salary, what percentage of your salary must you save each year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Perentage of Salary:______________
- You are scheduled to receive $10,000 in two years. When you receive it, you will invest it for six more years at 6.8 percent per year. How much will you have in eight years? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.If you invest $15,000 today, how much will you have in each of the following instances? Use Appendix A as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. In 6 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. In 17 years at 9 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c. In 15 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) d. In 14 years at 8 percent (compounded semiannually)? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)You are scheduled to receive $18,500 in three years. When you receive it, you will invest it for nine more years at 9.25 percent per year. How much will you have in twelve years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
- Your grandfather has offered you a choice of one of the three following alternatives: $7,500 now; $2,200 a year for nine years; or $31,000 at the end of nine years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. Assuming you could earn 10 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) b-1. If you could earn 11 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)If you invest $10,000 per period for the following number of periods, how much would you have in each of the following instances? Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. In 50 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)Suppose you are offered the alternative of receiving either $3,000 at the end of 8 years or $2,000 today. What interest would make you indifferent to your choice between $2,000 and the promise of $3,000 at the end of eight years?
- You expect to receive $29,000 at graduation in two years. You plan on investing it at 10 percent until you have $164,000. How long will you wait from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Your grandfather has offered you a choice of one of the three following alternatives: $10,000 now; $4,800 a year for eight years; or $56,000 at the end of eight years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. Assuming you could earn 9 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) a-2. Which alternative should you choose? multiple choice 1 $56,000 received at end of eight years $4,800 received each year for eight years $10,000 received now b-1. If you could earn 10 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) b-2. Which alternative should you choose? multiple choice 2 $56,000 received at end of eight years $4,800 received each year…Your uncle offers you a choice of $103,000 in 10 years or $35,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 11 percent, what is the present value of the $103,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
