They need to put into the account today to ensure

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Reference no: EM132072066

1. What is the present value of $14,000 received:

a. 28 years from today when the interest rate is 4% per year?

b. 14 years from today when the interest rate is 4% per year?

c. 7 years from today when the interest rate is 4% per year?

a. 28 years from today when the interest rate is 4% per year?

2. Your cousin is currently 8 years old. She will be going to college in 10 years. Your aunt and uncle would like to have $120,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 4.2% per year, how much money do they need to put into the account today to ensure that they will have $120,000 in 10 years?

Reference no: EM132072066

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