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Chapter 23 Assignment

# Chapter 23 Assignment - Name Aaron New Class ACC 240...

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Name: Aaron New Class: ACC 240 Section number 33858 Chapter 23 Assignment Date: October 3, 2010 Accounting 240 PV-FV PV-FV PROBLEMS (show calculations) 1. Your church has decided that one of its missions will be to provide assistance to those members that demonstrate a need for assistance to attend local community colleges. The board decided to set-up a trust fund that will be available in 5 years. One member puts up \$10,000 to begin the fund. The church also collects another \$5,000 per year for the next 5 years. How much will the fund have beginning in 5 years? Assume an interest rate of 5%. \$10,000*1.2763 + \$5,000*5.5256 = \$40,391.00 The Church will have \$40,391.00 in funding. 2. Assuming you won the \$3,000,000 Power Ball this weekend and elect to take a lump sum, how much will you take home assuming 4% interest rate. \$3,000,000/20 = \$150,000 13.5903*\$150,000 = \$2,038,545 I will be taking home \$2,038,545. 3. Assume you just had a beautiful 5 lb. baby girl. If you begin investing \$2,600 per year, (\$100 per pay check) how much will you have for your daughters college fund in 17 years? Assume an average return of 7%. \$2,600*30.8402 = \$80,184.52 I will have \$80,184.52 for her college fund.

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