2a. What is the present value of $7,900 in 10 years at 11%?
5a. If you invest $9,000 today, how much will you have in 2 years at 9%?
5d. In 25 years at 14% compounded semiannually?
7. Your uncle offers you a choice of $20,100 in 20 years or $870 today. If money is discounted at 9%, which would you choose?
11a. If you invest $8,500 per period for the following number of periods, how much would you have? 12 years at 10%?
12. You invest a single amount of $10,000 for 5 years at 10%. At the end of 5 years you take proceeds and invest them for 12 years at 15%. How much will you have after 17 years?
14.Phil Goode will receive $175,000 in 50 years. his friends are very jealous of him. If the funds are discounted back at a rate of 14%, what is the present value of his future "pot of gold"?
17. The Clearinghouse sweepstakes has just informed you that you have won $1 million. The amount is to be paid out at a rate of $20,000 a year for the next 50 years. With a discount rate of 10%, what is the present value of your winnings?
24. Les Moore retired as president of Goodman Snack Foods Company but i scurrently on a consulting contract for $35,000 per year for the next 10 years.
a. If Mr. Moore's opportunity cost (potential return) is 10%, what is the present value of his consulting contract?
b. Assuming Mr. Moore will not retire for two more years and will not start to receive his 10 payments until the end of the third year, what would be the value of his deffered annuity?
32. Franklin Templeton has just invested $9,260 for his son (age 1). This money will be used for his son's education 18 years from now. He calculates that he will need $71,231 by the time the boy goes to school. What rate of return will Mr. Templeton need in order to achieve this goal?
37. You wish to retire in 14 years, at which time you want to have accumulated enough money to receive an annual annuity of $17,000 for 19 years after retirement. During the period before retirement you can earn 8% annually, while after retirement you can earn 10% on your money. What annual contributions to the retirement fund will you allow you to receive the $17,000 annuity?