Find missing CF associated with future value of multiple cash flows
3. If Ceci invested $5,800 today in an account that is expected to earn 3.2 percent per year, and
she expects to make another investment in the same account in 3 years, then how much money
does Ceci expect to invest in 3 years if she expects to have $15,000 in her account in 4 years
from today?
A. An amount less than $7,500
B. An amount equal to or greater than $7,500 but less than $7,700
C. An amount equal to or greater than $7,700 but less than $8,200
D. An amount equal to or greater than $8,200 but less than $8,500
E. An amount equal to or greater than $8,500

3. If Ceci invested $5,600 today in an account that is expected to earn 3.4 percent per year, and
she expects to make another investment in the same account in 3 years, then how much money
does Ceci expect to invest in 3 years if she expects to have $15,000 in her account in 4 years
from today?

3. If Ceci invested $5,400 today in an account that is expected to earn 3.6 percent per year, and
she expects to make another investment in the same account in 3 years, then how much money
does Ceci expect to invest in 3 years if she expects to have $15,000 in her account in 4 years
from today?

3. If Ceci invested $5,200 today in an account that is expected to earn 3.8 percent per year, and
she expects to make another investment in the same account in 3 years, then how much money
does Ceci expect to invest in 3 years if she expects to have $15,000 in her account in 4 years
from today?

2

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Chapter 1 / Exercise 58

**Mathematical Applications for the Management, Life, and Social Sciences**

Harshbarger

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FNAN 301, Fall 2010, quiz 2, solutions
Convert problem to months and give APR that needs to be converted to quarterly rate
4. Davi currently has $26,000 saved for a new car that she plans to buy for $41,000 in 2 years
from today.
She believes she can earn an annual rate of return of 12.8 percent on her
investments.
How much does Davi need to save each quarter for 2 years to have exactly enough
in 2 years to pay for her car if she makes her next contribution to savings later today?
4. Davi currently has $27,000 saved for a new car that she plans to buy for $42,000 in 2 years
from today.
She believes she can earn an annual rate of return of 12.8 percent on her
investments.
How much does Davi need to save each quarter for 2 years to have exactly enough
in 2 years to pay for her car if she makes her next contribution to savings later today?
4. Davi currently has $28,000 saved for a new car that she plans to buy for $43,000 in 2 years
from today.