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 94 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
:D TYSM

cpetit11

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

The patient and his family meet with the nurse to discuss progress on the patient care plan. The patient and his family meet with the nurse to discuss progress on the patient care plan.
In middle childhood, children spend increasing amounts of time with peers and friends. In middle childhood, children spend increasing amounts of time with peers and friends.
When parents actively support higher education, their children achieve more in their future careers. When parents actively support higher education, their children achieve more in their future careers.
Women have even more need than men to plan for retirement; at retirement age they have typically ... Women have even more need than men to plan for retirement; at retirement age they have typically ...
How to choose the right payment plan with changing conditions (Question 1) How to choose the right payment plan with changing conditions (Question 1)
Acoelomate body plan of a flatworm Acoelomate body plan of a flatworm
Video: Fetal development - Weeks 9 to 38

For a complete list of videos, visit our video library