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 106 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
Excellent

hollysheppard095

  • Member
  • Posts: 339
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

The segmented body plan of an annelid, as illustrated by an earthworm. The segmented body plan of an annelid, as illustrated by an earthworm.
It is important that parents repeat safety rules to preschoolers and monitor compliance with rules. It is important that parents repeat safety rules to preschoolers and monitor compliance with rules.
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 ...
Plan of the Parthenon Plan of the Parthenon
Plan of The Pantheon Plan of The Pantheon
The distribution of the number of hours that a random sample of people spend doing chores per ... The distribution of the number of hours that a random sample of people spend doing chores per ...
Video: Congenital Heart Defects Animation

For a complete list of videos, visit our video library