s a 5-81NI=25, 99833. Your grandmother has promised to give you $10,000 when you graduate from college. She isexpecting you to graduate three years from now. What happens to the present value of this gift if youspeed up your graduation by one year and graduate two years from now?a. decreasesb. increasesc. remains constantd. cannot be determined from information provided

Present value (PV) is the current value of an expected future sum of money or cash flow, discounted…

Answered: 23-81 1=25, 998 33. Your grandmother…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.12MCP

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2. Suppose Grandma wants to accumulate $100,000 for her grandchild's college education in 18 years. How much must she deposit today into an account with an APR of 4%, compounded semiannually in order to have $100,000 in 18 years? Assume no additional deposits are made. PV = PMT= FV = APR = Periods = Compounding:
22. Your grandmother is gifting you GH¢ 100 a month for four to earn your Bachelor's degree. At a 5.5 percent discount rate, what are these payments worth to you on the day you enter college? a. GH¢ 4,201.16 b: GH¢ 4,299.88 c. GH¢ 4,509.19 d. GH¢ 4,608.87 GH¢ 4,800.00 years while you attend University e.
Listen The Chan family would like to establish a bursary at Camosun College. The bursary will pay $2,000 to a deserving finance student each year. Assuming that the payments will never end and that the funds can earn j1=3.5%, how much will it take to establish the bursary? Assume that the payments are at the end of each year. Your Answer:
4. Assume the total cost of a college education will be $300,000 when your child enters college in 18 years. You presently have $65,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Annual rate of interest %
May I ask for an explanation and solution to the question for a better understanding. Thank you! 10. You inherit P150,000 from your aunt. You decide to invest the money in a three-year certificate of Deposit (CD) that pays 4% interest, compounding quarterly, to use as a down payment on a house. How much money will you have when the CD matures? a. P506,188.80 b. P169,023.75 c. P168,729.60 d. P674,918.40
Incorrect Your answer is incorrect. The Barnes family wants to save money to travel the world. They purchase an annuity with a yearly payment of $590 that earns 4% interest, compounded annually. Payments will be made at the end of each year. Find the total value of the annuity in 13 years. Do not round any intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas $9809.80 X ? S
5. Calculating Present Value. Brenda Young desires to have $20,000 eight years from now for her daughter's college fund. If she will earn 4 percent (compounded annually) on her money, what amount should she deposit now? Use the present value of a single amount calculation. nere to search W 17 4+ 10 14 IDI 10 72 *3 #3 3 24 4. 8. 00 96 %23
If you want to have $23,000 for a down payment for a house in six years, what amount would you need to deposit today? Assume that your money will earn 3 percent. Use the TVM keys on your calculator ... NOT the tables in the book Enter your answer as a negative value in the form: -$nn,nnn.nn Numeric Response 19,262.13 X
Your grandmother is gifting you GH¢ 100 a month for four years while you attend University to earn your Bachelor's degree. At a 5.5 percent discount rate, what are these payments worth to you on the day you enter college? #randomized O A. GH¢ 4,201.16 O B. GH¢ 4,299.88 O C. GH¢ 4,509.19 O D. GH¢ 4,608.87
10. Dale wants to invest money in a 6% CD account that compounds semiannually. Dale would like the account to have a balance of $50,000 five years from now. How much must Dale deposit to accomplish her goal? Choose closest answer. A) $35,069. B) $43,131. C) $37,205. D) $35,000. PV 10pds 3% .7441 ,PV 10pds 6% .86262, PV 5 pds 6%, 7018 PV 5 pds 3% .7000
Assume the total cost of a college education will be $325,000 when your child enters college in 18 years. You presently have $85,000 to Invest. What annual rate of interest must you earn on your Investment to cover the cost of your child's college education? Note: Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Annual rate 7.74 %
Tony Ring wants to attend Northeast College. He will need $75,000 4 years from today. Assume Tony's bank pays 12% interest compounded semiannually. What must Tony deposit today so he will have $75,000 in 4 years? (Use the Table 12.3 provided.) Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. X Answer is complete but not entirely correct. Amount to be deposited $ 47,056 X

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