Problem - Calculating Present and Future Values

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Problem - Calculating Present and Future Values - Use future or present value techniques to solve the following problems.

If you inherited $45,000 today and invested all of it in a security that paid a 7 percent rate of return, how much would you have in 25 years?

If the average new home costs $275,000 today, how much will it cost in 10 years if the price increases by 5 percent each year?

You forecast that in 15 years, it will cost $190,000 to provide your child with a 4-year college education. Will you have enough if you take $75,000 today and invest it for the next 15 years at 4 percent?

If you can earn 4 percent, how much will you have to save each year if you want to retire in 35 years with $1 million?

Reference no: EM132695758

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