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Calculating present and future values

Use future or present value techniques to solvethe following problems.

1. If you inherited $60,000 today and invested all of it in asecurity that paid a 6 percent rate of return, how much would youhave in 20 years? Round the answer to the nearest cent.Round FV-factor to three decimal places.
   Calculate your answer based on the FV-factor.

   $  

   
   
   Calculate your answer based on the financial calculator.

   $  

   
   
2. If the average new home costs $225,000 today, how much will itcost in 8 years if the price increases by 3 percent each year?Round the answer to the nearest cent. Round FV-factor tothree decimal places.
   Calculate your answer based on the FV-factor.

   $  

   
   
   Calculate your answer based on the financial calculator.

   $  

   
   
3. You forecast that in 7 years it will cost $246,000 to provideyour child a 4-year college education. Will you have enough if youtake $79,000 today and invest it for the next 7 years at 6 percent?Round the answer to the nearest cent. Round FV-factor andFVA-factors to three decimal places.
   -Select-YesNo , you will have approximately

   $  

   -Select-moreless than your estimate of$246,000.
   
4. If you can earn 9 percent, how much will you have to save eachyear if you want to retire in 40 years with $1.8 million?Round the answer to the nearest cent. Round FVA-factor tothree decimal places.
   Calculate your answer based on the FVA-factor.

   $  

   
   
   Calculate your answer based on the financial calculator.

   $