Solution: remains constant
Explanation: The present value will increase if you speed up your graduation and present value will decrease if you delay the graduation. In the multiple choice answers we are not given the increase option; thus I am selecting remains constant
You'll graduate from college in three years. Your grandmother has promised to give you $5,000 at...
Your grandmother promised to give you $100 today and $100 a year from now, 2 years from now, 3 years from now, 4 years from now, and 5 years from now. Given that the current interest rate is 3% compounded annually, what is the present value of this stream of cash flows?
You expect to receive $17,000 from your godmother at graduation in two years. You plan to invest the gift in the Transylvanian Bank & Loan which pays 10 percent annually on deposits. You'll leave your money in the bank until you have $92,000. How long will you have to wait from now before you reach that target amount? (Do not round your intermediate calculations.) Multiple Choice O 1772 years O 21.69 years O 19.72 years O O 15.72 years
You receive $20,000 from your grandmother as a graduation gift. You plan to invest this at an annual interest rate of 6.5 percent. How much money will you have 10 years now?
Your grandparents have given you an early college gift of $5,000 that you would like to save to fund a post-graduation trip to Europe in 3 years. How much will you have for your trip in 3 years if you can invest this gift at 5% compounded annually? (express your answer as the nearest whole dollar amount?
You receive $20,000 from your grandmother as a graduation gift. You plan to invest this at an annual interest rate of 6.5 percent. How much money will you have 12 years now? Group of answer choices $41,220.63 $35,782.89 $42,581.93 $37,542.75
Upon graduation from college in two years you plan to go for an extravagant European vacation. Your parents will give you a graduation gift of $3,600 to help with the cost of the vacation. You have $2,000 available at present, which you plan to deposit into an account that pays 11.5 percent interest compounded quarterly. What is the maximum amount you will be able to spend on your vacation?
give you $1,000 per year for the next 10 1. Your grandmother has offered to give you $1,000 per year to what is the present value of this 10-year. $1.000 annuity discounted back to the present at 5 percent? What will be the present value if you received the $1,000 payment at the beginning of each year? 2. You are graduating from college at the end of this semester, and you have decided to invest $5000 a year for the...
Suppose that you owe $20,000 when you graduate from college. Your Direct Subsidized loan has an annual interest rate of 4.45%. If you want to pay back the entirety of your loan in ten years, what would be your total payment per month? (hint: don’t forget to change the annual rate to a monthly rate for your calculation).
Irene's uncle has given her $6,000 today. She is required to open a savings account today and deposit the money in it. She will not be able to withdraw any money from this account before her graduation from college. Irene plans on withdrawing all the money from the account on her graduation. She expects that she will graduate in three years. If we assume that the interest rate remains the same on her deposit, what will happen to the future...
Decision #1: Which set of Cash Flows is worth more now? Assume that your grandmother wants to give you generous gift. She wants you to choose which one of the following sets of cash flows you would like to receive: Option A: Receive a one-time gift of $ 10,000 today. Option B: Receive a $1400 gift each year for the next 10 years. The first $1400 would be received 1 year from today. Option C: Receive a one-time gift of $17,000 10...