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Chapter 8 In class assignment-submitted in Canvas Use these factors to answer questions n i PV$1 FV$1 PVA FVA 3 7.0% 0.81630 1.22504 2.62432 3.2149 5 4.5% 0.80245 1.24618 4.38998 5.4707 60 0.375% 0.79885 1.25180 53.6393867.1456 1. You want to have $30,000 at the end of 5 years for a house down payment. How much should you save each month to achieve your goal if you can earn 4.5%? $_(round to nearest dollar) 2. You want to buy a $30,000 car today and you will be making monthly payments for the next 5 years. What is your car payment if your borrowing rate is 4.5%? $_ (round to nearest dollar) 3. You win the local lottery, which offers $500,000 to you today or $600,000 if you wait 3 years to take the money. Your current investment rate is 7%. What is the best economic decision, take the money today or wait 3 years? 4. You plan to invest $5,000 every year for the next 5 years. What will be the value of your investment at the end of the 5 years if you can earn 4.5% annual interest? $ (round to nearest dollar) 5. Your grandparents have decided to give you $25,000 in three years for a car. Assuming your grandparents are earning 7% annually, how much do they need to invest so that have the $25,000 to give you in 3 years? $ (round to nearest dollar)

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