| 5a. You have just made your first $2,000 contribution to your individual retirement account. Assuming you earn a 10 percent rate of return and make no additional contributions, what will your account be worth when you retire in 45 years? |
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RATE = |
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FV = |
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| 5b. You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you’re around to collect), 80 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent? |
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5c. Assume the total cost of a college education will be $250,000 when your child enters college in 18 years. You presently have $43,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child’s college education? |
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Pay attention to the sign convention! |
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5d. You’re trying to save to buy a new $150,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 5.5 percent annual interest on its accounts. How long will it be before you have enough to buy the care? |
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PV = |
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Pay attention to the sign convention! |
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Guide to Firewalls and VPNs Chapter 1 and 2 Case Exercises
when we get on the plane to go back to Laos, the first thing we will do is beat up the women!
Identify the first sources you go to when making a purchasing decision for a product. What made you decide to use these sources?
How might different ethical philosophies influence how managers make decisions when it comes to offshoring of jobs?
Successful Teams
In what way, if any, should the outcome of the current litigation affect Thieme’s decision about renewing the company’s insurance coverage