What is that worth today in given problem

Reference no: EM132028174

Question: Part A) Bill has decided to begin investing for retirement. He is going to put his tax raturn of $5,642 into the account today and then set up monthly contributions from his paycheck in the amount of $244. The money will go into an account that earns 4.2 percent annual interest (compounded monthly). How much will he have in the account after 31 years?

Part B) Fred owes $8,000 on his credit card, which carries an annual interest rate of 12.2 percent. If he does not charge anything else and sends the credit card company $477 every month, how many months will it take to pay off the card? (Show your answer to two decimal places, e.g., 12.34)

Part C) A distant cousin named you in their will and has made provisions so that you will receive a single lump sum payment of $84600 in 22 years. What is that worth today, assuming an interest rate of 10.6 percent? (Enter your answer as a positive number)

Reference no: EM132028174

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