# FIN 571 Week 2 Individual Homework Solution

## FIN 571 Week 2 Individual Homework Solution

FIN 571 Week 2 Individual Homework Solution
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FIN 571 Week 2 Individual Homework Solution

University Of Phoenix

Week 2 Homework & Solutions

Week 2 Individual Homework Submit Through Gradebook In Excel

1- Your daughter would like to attend college in 5 years. You have determined that if you have \$60,000 when she begins college you will be able to pay for her 4 year degree. You have opportunity to invest at 12%. How much must you put away in equal annual payments in order to achieve your goal of \$60,000 in 5 years?

2- Assuming you have opportunity to invest at 15 percent, which would you prefer, \$12,000 today or \$27,000 in 5 years?

3- Beginning in 6 years you will receive \$12,000 a year for 4 years from a trust. You plan to retire in 15 years. How much will you have at that time from the income of this trust if you have opportunity to invest at 8%?

4- Assuming your interest is compounded monthly, how much will \$5,000 grow to in 5 years at an interest rate of 10%?

5- You just received an inheritance of \$60,000. You need to have \$40,000 in 5 years for your daughters tuition. You have opportunity to invest at 12%. You feel an urgent need to spend your cash on a nice car. How much can you spend on your car today and still be able to fund the \$40,000 tuition in 5 years?

1. Calculating Interest Rate. Find the annual interest rate for the following:
Present Value Years Future Value
\$400 11 \$684
\$183 4 \$249
\$300 7 \$300

1. Present Values. What is the total present value of the following cash-flow stream if the...