# Chapter 6 homework.xlsx - Determine the future value of the...

• Homework Help
• 16
• 86% (14) 12 out of 14 people found this document helpful

This preview shows page 1 - 5 out of 16 pages.

Invested Amount Interest Rate No. of Periods FV of \$1 (from chart) Future Value 1 18,500 9% 10 2.36736 43,796 2 29,000 6% 8 1.59385 46,222 3 41,000 6% 14 2.26090 92,697 4 62,000 5% 10 1.62889 100,991 =Present Value
1 Alex Meir recently won a lottery and has the option of receiving one of the following three prizes (1) \$88,000 cash immediately (2) \$34,000 cash immediately and a six-period annuity of \$9,300 beginning one year from today (3) a six-period annuity of \$18,400 beginning one year from today a Assuming an interest rate of 7%, determine the Present value for the above options. (Use PVA of Option Present Value Annuity PVA of \$1 (from chart) PV of Annuity 1 88,000 2 34,000 9,300 i=7%, n=6 4.76654 44,329 3 - 18,400 i=7%, n=6 4.76654 87,704 2 The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on Dec Weimer will make annual deposits of \$175,000 into a special bank account at the end of each of 1 Assuming that the bank account pays 8% interest compounded annually, what will be the fund ba (Use FVA of \$1) (Round "FV Factor" to 4 decimal places and final answer to the nearest dollar am
s: \$1) (Round "PV Factors" to 5 decimal places and final answers to the nearest dollar amount.) Total Present Value 88,000 78,329 87,704 cember 31, 2022. 10 years beginning December 31, 2013. alance after the last payment is made on December 31, 2022? mount.)