Question

1. Today Jim Byelow purchased an investment-grade diamond for $75,000. He expects it to increase in value at a rate of 10% a year for the next seven years. How much is he expecting his diamond to eventually be worth? - recepits nyear from now (interest rattetion 75000 (120) = FV 2. Sara Cellhigh wants to give her daughter $75,000 to start her own business when she graduates from business school in seven years with her M.B.A. How much should she invest today, given an expected annual rate of investment return of 10%, to achieve her goal? Pu= FU DJ = 75000 (tti (1.10) 3. In January last year. Richard T. Gill loaned $25,000 to his son ("Little Richie") at 10% interest compounded annually, payable in January, 2022. When his son repays the loan, how much should Richard receive? 4. If you wish to withdraw $25,000 from a trust fund each year for the next ten years that earns 8% annually, how much must you have on deposit now? 5. Jodi Sgonnabe Rich expects to receive her inheritance of $500,000 in ten years. Assume that her opportunity cost on investments is 7% annually. What is Jodi's inheritance worth now?

Answer 1

Due to presence of HOMEWORKLIB POLICY, I am answering first question.

1.

Ans: $146153.78

Explanation:

Worth after 7 years:

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