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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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