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A M ENGINE ENING ERIT Homework Assignment 02 I you invest $3,500 four years from now, how much approximately will be in the account years from now, if i = 10% compounded annually? ShowYour calculationstegetcredit. (a) $23,546 (b) $4,104 20 $16,082 (d) $4,271 our company seeks to take over Make Money Company. Your company's offer for Make Money is $2,500,000 in cash upon signing the agreement followed by 5 annual payments of $200,000 starting 2 years later. The time value of money is 8%, what is the present worth of your company's offer? Show your calculations to Ret credit, (a) $3,239,391 (b) $3,298,542 (c) $3,439,391 (d) $3,498,542 7. A young engineer calculated that monthly payments of $A are required to pay off a $8,000 loan for n years at 1% interest, compounded annually. If the engineer decides to borrow $16,000 instead with the same n and i%, her monthly payments will be $2A. Show your calculations to get credit (a) Cannot be determined without knowing the value of n and i Ib) Cannot be determined without knowing the value of n or i c) False Other problems 8. You are offered $400 now plus $200 a year from now for your used computer. Since the sum those 2 amounts is $600, the buyer suggests waiting and giving you $600 a year from now, You know and trust the buyer, and you typically earn 4% per year on your money. Based on this, answer the following questions: (a) is the offer fair and equitable? Show calculations (results) to justify your answer and to get full credit. b) it is suggested that a single fair amount be paid now. What is a fair value? tal needs $2,000 to pay off her bills. She borrows this amount from a bank with plans 9. Crys to pay it back over the next four years at SX per year

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