You just won the grand prize in a national writing contest! As your prize, you will receive $510 a month for 48 months. If you can earn 5.2 percent on your money, what is this prize worth to you today?
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You just won the grand prize in a national writing contest! As your prize, you will receive $510 a month for 48 months. If you can earn 5.2 percent on your money, what is this prize worth to you today?
Present value
The amount of money that has to be invested in order to accomplish a particular future goal is known as the present value.
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- You just won the lottery! As your prize, you will receive $2,200 a month for 90 months. If you can earn 7 percent on your money, what is this prize worth to you today? $You just won the grand prize in a national writing contest! As your prize, you will receive $570 a month for 48 months. If you can earn 3.5 percent on your money, what is this prize worth to you today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Because you study at AUIS when you graduate, we expect you to earn $150 more a month than another student who is graduated from another university in Iraq. If you invest and earn 10% interest annually compounding semi-annually on the extra $150 you have earned for your entire working life from age of (22 – 65). What extra value studying at AUIS has given to you? in another-word, what is the future value of the extra money you have earned?
- You just won the lottery! As your prize you will receive $2,500 a month for 10 years. If you can earn 8% per year on your money, what is this prize worth to you today?You just accepted an offer from XYZ Petrochemical Company in Louisiana. As a sign up bonus, the XYZ will deposit $10,000 in a retirement account for you which generates 12% return annually. In addition, the company deposits $5,000 every year in the same account, if you stays with XYZ. How much money will be accumulated in this account if you decide to retire 40 years from now?You plan to buy a new car in three years and begin depositing $250 per month into a savings account that earns 4.5% annual interest, compounded monthly. After three years of deposits, how much money is in the account? What would you need to enter in Excel to help you answer this question?
- Today, you start working for University of Houston as administrative staff. You decided to invest $500 a month in a fund that is expected to earn 6 percent annual interest. If you start monthly contribution of $500 today for 35 years, how much will you have in 35 years?Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)In 3 years you are planning a round-the-world trip which will cost $70,000. What amount would you need to deposit today, assuming that your deposit will earn 10% annually? [Indicate which Table you used and show all your work]You decide to invest in an instrument that pays 5% annual capitalizable interest each semester. If you want to get an amount of $1,000,000 at the end of 20 years, giving contributions at the end of each month, how much does each monthly contribution have to be to reach the goal?
- When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be earning 3% per year. (Include dollars and cents in your answers.) If you wish to do that for 10 years starting one year after you retire, what does the balance in your retirement account have to be when you retire? If the account will be earning 6% per year, and you wish to do that for 10 years starting one year after you retire, what does the balance in your retirement account have to be when you retire? If the account will be earning 3% per year, and you wish to do that for 20 years starting on the day you retire, what does the balance in your retirement account have to be when you retire?Richard just entered a university, and his parents are planning to give him a car upon graduation. How much should they invest into an account with an APR of 10% compounded monthly if they estimate that in four years the car will cost $15,000? Round your answer to the nearest cent.Sima has won the Wisconsin lottery with a jackpot of $10,000,000. She will be paid out in 20 equal annual installments with the first payment made immediately. If she had the money now she could invest it in an account that generates 9% compounded annually. What is the present value of the stream of payments? Present value of the lottery winnings (round up to the nearest dollar):
