What was the annual increase in selling price

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1. You're trying to save to buy a new $190,000 Ferrari. You have $33,000 today that can be invested at your bank. The bank pays 5.0 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

2. Imprudential, Inc., has an unfunded pension liability of $750 million that must be paid in 17 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 10.0 percent, what is the present value of this liability?

3. In January 2007, the average price of an asset was $27,658. 9 years earlier, the average price was $21,708. What was the annual increase in selling price?

Reference no: EM132061169

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