(a)Your parents are giving you $300 a month for 6 years while you are in college....

(a)Your parents are giving you $300 a month for 6 years while you are in college. At a 0.583 percent monthly discount rate, what are these payments worth to you when you first start college?
(b)You are scheduled to receive annual payments of $11,000 for each of the next 22 years. Your discount rate is 8 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?
(c)One year ago, the Jenkins Family Fun Center deposited $3,500 in an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $5,300 to this account. They plan on making a final deposit of $7,500 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a 7 percent rate of return?
(d)Beginning three months from now, you want to be able to withdraw $1,700 each quarter from your bank account to cover college expenses. The account pays .45 percent interest per quarter. How much do you need to have in your account today to meet your expense needs over the next four years?

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Formulas will be as follows:

jeff jeffy answered 1 year ago

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