Help HW, not understanding the financial question. 2 all of these. errr, really frustrated, please help me?
Show me that you do not want to answer me. I want to copy the actual learning to be able to do well in class. I received answers to scores for the best. Thank you all. 21. Father has decided to lump together once. For many schools will want to. $ 60,000 by the time 5 years old he is 18 years. (13 years). Using a rate of 8%. Figures amount to be invested in each fund sassy. Will do. Does he have to invest at this time is reached. $ 60,000 in 13 years? 37. You win a decision in the car for the accident. $ 275,000. You will immediately receive $ 135,000 in cash, but must pay the lawyers. $ 91,666 from the total. In addition, you will receive. $ 5500 per year for 20 years after the $ 110,000 balance. owed of $ 30,000 will pay. If the interest rate. 7 per cent which is the current value of your payment.
The first problem is a problem easy to find present value. (PV) set the future (FV) and rates. (i) of the formula PV = [FV / (1 + i) n ^] then. FV = 60000 i = 0.08 n = 13 PV = 60000 / (1 + .08) ^ 13 is the answer to 22,061.875 problem is a combination of current value. (PV) payment of (A) the future value (FV). And the current value (PV) for PV = PV1. PV2 + + PV3 PV1: (only two less to PV1) = 135,000-91,666. = 43,334 PV2: (current formula used to set annuity). PV = (A / i) * (1 – [1 / (1 + i) n ^]) for annuity = 5500 n = 20 i = 0.07 PV2 = (5500/0.07). * (1 – [1 / (1 + .07) ^ 20]) = 58267.078 PV3 = (present value using a formula set up as the future. 21 issues) PV = [FV / (1 + i) ^ n] to FV = 30000 i = 0.07 n = 20 PV3 = 30000 / (1 + .07) ^ 20 = 7752,570. So the answer is PV = PV1 + PV2 + PV3 PV = 43334 +58267,078 + 7752,570. PV = 109,353.648.
