Assignment:
Q1. How much should Elton John invest at the end of each year for six years if he expects to earn 6% and he wants to accumulate $150,000 in order to buy a new grand piano six years from today?
Q2. How much must Elton John invest today if he expects to earn 6% compounded semiannually and he wants to accumulate $150,000 in order to buy a new grand piano six years from today?
Q3. How much should Elton John invest today if he expects to earn 6% and he wants to accumulate $150,000 in order to buy a new grand piano six years from today?
Q4. Michael is depositing $4,095 at the end of each year in a fund that earns 10%. How many years will be required for the balance in the fund to become $25,000?
Q5. Elizabeth is investing $300,000 in a fund that earns 6% interest compounded annually. What equal amount can Elizabeth withdraw at the end of each of the next ten years?
Q6. Elizabeth Taylor will receive a lump sum of $300,000 five years from now from a trust fund established by a former husband. Assume that the appropriate interest rate for discounting is 8 percent, compounded quarterly. What is the present value today of the future distribution?
Q7. XYZ Corporation issues $1,000,000 of 9% bonds due in 20 years. Interest is payable at the end of each year. The current market rate of interest for bonds of similar risk is 8%. What amount will XYZ Corporation receive when the bonds are issued?
Q8. Demetrius is a senior in high school He inherited $8,000 from his grandmother. Demetrius plans to save the inheritance with the hope that it will grow and provide enough money for him to buy a new car when he graduates from college. If he deposits the funds in the bank in an account that will earn 8%, how much money should Demetrius have in five years?
Provide complete and step by step solution for the question and show calculations and use formulas.