Appropriate discount rate-what is the present value

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Reference no: EM131606041

1. An investment will pay you $35,000 in 10 years. If the appropriate discount rate is 6.2 percent compounded daily, what is the present value? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

2. You are planning to make monthly deposits of $470 into a retirement account that pays 9 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 35 years? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

3. Beginning three months from now, you want to be able to withdraw $1,800 each quarter from your bank account to cover college expenses over the next three years. If the account pays .40 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next three years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131606041

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