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Week 9 - Time Value of Money Chapter 9 a. If you invest $10,000 today, how much will you have in: 2 years @ 7% 7 years @ 10% 25 years @ 15% *25 years...

Week 9 - Time Value of Money Chapter 9


a. If you invest $10,000 today, how much will you have in:
2 years @ 7%
7 years @ 10%
25 years @ 15%
*25 years @ 18% *compounded semi-annually for this last scenario.

b. If you invest $2,000 per year in a retirement account, how much will you have in:
8 years at 8%
10 years at 9%
12 years at 10%
15 years at 11%

c. How much would you have to invest today to receive:
$18,000 in 8 years at 10%
$22,000 in 12 years at 13%

d. How much would you have to invest today to receive:
$10,000 per year for 5 years at 9%
$25,000 per year for 25 years at 8%

e. Your uncle offers you a choice of $28,000 in 50 years OR $150 today?
If money is discounted at 12%, which should you choose? (You must show the PV or FV
calculation to earn any credit.)

Week 9 - Time Value of Money Chapter 9 2 years @ 7% 7 years @ 10% 25 years @ 15% *25 years @ 18% *compounded semi-annually for this last scenario. 8 years at 8% 10 years at 9% 12 years at 10% 15 years at 11% $18,000 in 8 years at 10% $22,000 in 12 years at 13% $10,000 per year for 5 years at 9% $25,000 per year for 25 years at 8% $28,000 in 50 years OR $150 today? If money is discounted at 12%, which should you choose? (You must show the PV or FV calculation to earn any credit.) a. If you invest $10,000 today, how much will you have in: b. If you invest $2,000 per year in a retirement account, how much will you have in: c. How much would you have to invest today to receive: d. How much would you have to invest today to receive: e. Your uncle offers you a choice o
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