Sami buys a used truck for $1,500. After using it for 3 years, he expects to sell it for $800. If i = 7.5% per year, the future worth in dollars is: Select one: O O O O a. $1,500 $700(P/F,7.5%,3) b. $ 700+ 10% of $700 c. $700 - $1,500 (F/P,7.5%,3) d. $1,500(F/P,7.5%,3) - 800

a. In the next five years, Jerome is planning to buy a specialized piece of machinery to replace the old one in his restaurant. He estimates that the machine would cost $250 000. Given that the existing interest rate is 8 %how much money should he invest now? b. He has an option to invest in a fixed deposit account at an interest rate of 10%How much should he invest at the beginning of each year for the next five (5) years in order to achieve his goal? c. If the interest rate increases from 10% to 12%, by how much would the annual investment in part (b) above change ? d. You inherited $ 6,000 from your grandfather . You want to buy a piece of equipment costing $ 7,000 two years from now . Will you have enough money to buy the equipment if you deposit this money in an account paying 8 % compounded semi -annually ?

Allison has a golden goose that will lay an egg every year until forever. The first egg will be out next year, and each egg is worth $500. Allison's friend, Eric, offers a price to buy the golden goose from Allison today. The interest rate is 10%. From the cost-benefit analysis, under which of the following offers would Allison be willing to sell the goose to Eric? O A $4,500 OB. $5,500 OC. Allison would want to sell it to Eric with both $4,500 and $5.500. D. Allison wouldn't want to sell it anyway since the eggs would be laid out forever.

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Dusty would like to buy a new car in five years. He currently has $11,500 saved. He's considering buying a car for around $15,500 but would like to add a Turbo engine to increase the car's performance. This would increase the price of the car to $19,500. Required: 1-a. If Dusty can earn 10% interest, compounded annually, how much will he have in five years? (EV of $1, PV of $1, EVA of $1, and PVA of $1) 1-b. Will he be able to get a car with a Turbo engine in five years? Complete this question by entering your answers in the tabs below. Req 1A Req 18 If Dusty can earn 10% interest, compounded annually, how much will he have in five years? (Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places.) Future value Reg 1A Req 18 >

1.) Starting with $15,000, how much will you have in 10 years if you can earn 6 percent on your money? 2.) If you can earn only 4 percent? If the average new home costs $275,000 today, how much will it cost in 10 years if the price increases by 5 percent each year? 3.) If you can earn 4 percent, how much will you have to save each year if you want to retire in 35 years with $1 million?

Tristan Sandino is selling his motorcycle. His friend, Rudy, is offering to pay cash in the amount of $8,800. Another friend, Costa, has offered payments of $300 monthly for 4 years. What is the present value of Costa's payments? Assume money is worth 3.5%, compounded monthly.

Pete Air wants to buy a used Jeep in 6 years. He estimates the Jeep will cost $17,400. Assume Pete invests $12,400 now at 12% interest compounded semiannually. a. Calculate the maturity value of the investment. (Use the Table provided.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Maturity value b. Will Pete have enough money to buy the Jeep at the end of 6 years? O Yes No Sce S.

Mary Smith plans to buy a truck for $20,000 after two years if the interest rate is 4% how much money should Mary set aside today for the purchase

12–25. Pete Air wants to buy a used Jeep in 5 years. He estimates the Jeep will cost $15,000. Assume Pete invests $10,000 now at 12% interest compounded semiannually. Will Pete have enough money to buy his Jeep at the end of 5 years?  PROVIDE THE FOLLOWING FOR EACH PROBLEM N= I= PV= PMT= FV= C/Y= P/Y =