Calculate the present value of the annual savings

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Reference no: EM131486188

Question: 1. What would be the net present value of a microwave oven that costs $159 and will save you $68 a year in time and food away from home? Assume an average return on your savings of 4 percent for five years. Calculate the present value of the annual savings, then subtract the cost of the microwave.

2. If a person saves $62 a month by using coupons and doing comparison shopping,

(a) what is the amount for a year?

(b) What would be the future value of this annual amount over 10 years, assuming an interest rate of 4 percent?

Reference no: EM131486188

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