Nicole Tatum FIN 1103-32 week 1

# Nicole Tatum FIN 1103-32 week 1 - c The amount a person...

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1. Ben Collins plans to buy a house for \$220,000. If that real estate is expected to increase in value by 3 percent each year, what will its approximate value be seven years from now? \$220,000 x 1.230= \$270,600 5. What would be the yearly earnings for a person with \$8,000 in savings at an annual interest rate of 2.5 percent? \$8,000 0.025 = \$200 6. Using time value of money tables, calculate the following. a. The future value of \$450 six years from now at 7 percent. \$450 1.501 = \$675.45 b. The future value of \$800 saved each year for 10 years at 8 percent. \$800 14.487 = \$11,589.60
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Unformatted text preview: c. The amount a person would have to deposit today (present value) at a 6 percent interest rate to have \$1,000 five years from now. \$1,000 .747 = \$747 d. The amount a person would have to deposit today to be able to take out \$500 a year for 10 years from an account earning 8 percent. \$500 6.710 = \$3,355 10. Carla Lopez deposits \$3,000 a year into her retirement account. If these funds have an average earning of 9 percent over the 40 years until her retirement, what will be the value of her retirement account? \$3,000 259.060 = \$777...
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