Calculating present and future values Use future or present value techniques to solve the following problems. If you...

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Finance

Calculating present and future values
Use future or present value techniques to solvethe following problems.
If you inherited $60,000 today and invested all of it in asecurity that paid a 6 percent rate of return, how much would youhave in 20 years? Round the answer to the nearest cent.Round FV-factor to three decimal places.
Calculate your answer based on the FV-factor.
$

Calculate your answer based on the financial calculator.
$

If the average new home costs $225,000 today, how much will itcost in 8 years if the price increases by 3 percent each year?Round the answer to the nearest cent. Round FV-factor tothree decimal places.
Calculate your answer based on the FV-factor.
$

Calculate your answer based on the financial calculator.
$

You forecast that in 7 years it will cost $246,000 to provideyour child a 4-year college education. Will you have enough if youtake $79,000 today and invest it for the next 7 years at 6 percent?Round the answer to the nearest cent. Round FV-factor andFVA-factors to three decimal places.
-Select-YesNo , you will have approximately
$
-Select-moreless than your estimate of$246,000.
If you can earn 9 percent, how much will you have to save eachyear if you want to retire in 40 years with $1.8 million?Round the answer to the nearest cent. Round FVA-factor tothree decimal places.
Calculate your answer based on the FVA-factor.
$

Calculate your answer based on the financial calculator.
$

Answer & Explanation Solved by verified expert

4.1 Ratings (506 Votes)

aWe are given the following informationPV6000000r600n20frequency1We need to solve the following equation to arrive at therequired FVSo the FV is 19242813TI BA II Plus Financial calculator inputs PV 60000 See Answer

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Transcribed Image Text

Calculating present and future valuesUse future or present value techniques to solvethe following problems.If you inherited $60,000 today and invested all of it in asecurity that paid a 6 percent rate of return, how much would youhave in 20 years? Round the answer to the nearest cent.Round FV-factor to three decimal places.Calculate your answer based on the FV-factor.$ Calculate your answer based on the financial calculator.$ If the average new home costs $225,000 today, how much will itcost in 8 years if the price increases by 3 percent each year?Round the answer to the nearest cent. Round FV-factor tothree decimal places.Calculate your answer based on the FV-factor.$ Calculate your answer based on the financial calculator.$ You forecast that in 7 years it will cost $246,000 to provideyour child a 4-year college education. Will you have enough if youtake $79,000 today and invest it for the next 7 years at 6 percent?Round the answer to the nearest cent. Round FV-factor andFVA-factors to three decimal places.-Select-YesNo , you will have approximately$ -Select-moreless than your estimate of$246,000.If you can earn 9 percent, how much will you have to save eachyear if you want to retire in 40 years with $1.8 million?Round the answer to the nearest cent. Round FVA-factor tothree decimal places.Calculate your answer based on the FVA-factor.$ Calculate your answer based on the financial calculator.$