This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Your parents plan to spend 20,000 on a car for you upon graduation from college. If you will ... (Read 114 times)

abarnes

  • Hero Member
  • *****
  • Posts: 556
on: Jul 10, 2018
Your parents plan to spend 20,000 on a car for you upon graduation from college. If you will graduate in three years and your parents can earn 4.125 annually on their investment, how much money must they set aside today for your car?
 
  A) 20,000
  B) 17,704
  C) 17,716
  D) 16,387

Question 2

An investment promises a payoff of 195 two and one-half years from today. At a discount rate of 7.5 per year, what is the present value of this investment?
 
  A) 162.03
  B) 162.75
  C) 169.47
  D) There is not enough information to answer this question.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

isabelt_18

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: C
Explanation: C) PV = = = 17,715.97
MODE = END
INPUT 3 4.125 ? 0 -20,000
KEY N I/Y PV PMT FV
CPT 17,715.97

Answer to Question 2

Answer: B
Explanation: B) PV = = 162.75
MODE = END
INPUT 2.5 7.5 ? 0 -195
KEY N I/Y PV PMT FV
CPT 162.75


abarnes

  • Member
  • Posts: 556
Reply 2 on: Jul 10, 2018
Wow, this really help

brbarasa

  • Member
  • Posts: 308
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Body plan of a flatworm. Body plan of a flatworm.
The segmented body plan of an annelid, as illustrated by an earthworm. The segmented body plan of an annelid, as illustrated by an earthworm.
Survivorship Care Plan Survivorship Care Plan
Shy children often have a high arousal level in novel social situations. Over time, parents can help ... Shy children often have a high arousal level in novel social situations. Over time, parents can help ...
Dagny Taggart is a graduating college senior and she is considering the costs of going to ... Dagny Taggart is a graduating college senior and she is considering the costs of going to ...
PCR screens of Navajo affected with albinism (N4 and N5) and the parents of N4 (N2 and N3) PCR screens of Navajo affected with albinism (N4 and N5) and the parents of N4 (N2 and N3)
Video: Supine Position

For a complete list of videos, visit our video library