What are the present value of the future amounts

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a. Sales of a new finance book were 15,000 copies this year and were expected to increase by 20% per year. What are expected sales during each of the next 3 years?

b. What are the present value of the following future amounts?

i. RM800 to be received 10 years from now discounted back to the present at 10%.

ii. RM1,000 to be received 8 years from now discounted back to the present at 20%.

c. Sarah would like to make a single investment and have RM2 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4% annually. How much will Sarah have to invest today?

d. You wish to have accumulated RM15,000 at the end of 15 years in order to pay for your child's education. To do this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 6% compounded annually, how much must you deposit each year to reach your goal.

Reference no: EM132956637

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