Joe won a lottery jackpot that will pay him $12,000 each year for the next ten years. If the market interest rates are currently 12%, how much does the lottery have to invest today to pay out this prize to Joe over the next ten years?
Mary just deposited $33,000 in an account paying 10% interest. She plans to leave the money in this account for seven years. How much will she have in the account at the end of the seventh year?
Mary and Joe would like to save up $10,000 by the end of three years from now to buy new furniture for their home. They currently have $2500 in a savings account set aside for the furniture. They would like to make equal year end deposits to this savings account to pay for the furniture when they purchase it three years from now. Assuming that this account pays 8% interest, how much should the year end payments be?
Show all work for each assignment and explain each step carefully.
Develop personal financial goals based on an understanding of the process for making personal financial decisions.
Demonstrate the concept of the time-value of money through the use of examples.
2007-08-19 12:59:24 · 3 answers · asked by Angel 2 in Business & Finance ➔ Personal Finance
Thank You!
2007-08-19 13:01:38 · update #1
i giver up when you and teach figure it out come back and tell the world -- it will only cost you five more points!!!
2007-08-23 13:00:29 · answer #1 · answered by Anonymous · 0⤊ 0⤋
before everything, you're able to be resolved interior of your self that that's what you fairly need to do. in case you at the instant are not, then no utility or the different sort of application will do it for you. start up via keeping receipts of all your money, and as quickly as a week or so, take a seat and evaluation what you have spent your money on in the process the previous week. Then verify which expenses have been fairly mandatory, then verify to cut back or get rid of the pointless ones. cut back up your credit enjoying cards, save for in line with hazard one that calls which you would be able to have money already in the account; form of like a debit card. on each occasion achieveable, pay for each thing in money. pay off all your debts as particularly rapid as achieveable. in case you artwork for a business enterprise that has a 401k plan, then start up now to take part in it, in spite of in case you could purely set aside a small volume, as then you definitely gets into the habit of saving and seeing your mark downs boost over the years, and this could supply you a great feeling.
2016-10-16 04:14:19 · answer #2 · answered by ? 4 · 0⤊ 0⤋
This sounds too much like a personal finance question in high school. Therefore, I suggest you get out your calculator and 'do the math.'
2007-08-19 13:35:27 · answer #3 · answered by homerunhitter 4 · 1⤊ 0⤋