Answer:
(a) $34.4
(b) $38.70(Approx).
(c) $61.9524
Explanation:
(a) Current price:
= $34.4
We use the formula:
where,
A = future value
P = present value
r = rate of interest
n = time period
(b)
= 34.4 × 1.124864
= $38.6953
= $38.70(Approx).
(c)
= 34.4 × 1.80094351
= $38.6953
= $61.9524
Answer:
$1,069.74
Explanation:
We use the present value formula which is shown in the attachment below:
Data provided in the question
Future value = $1,000
Rate of interest = 12%
NPER = 16 years
PMT = $1,000 × 13% = $130
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the value of the bond is $1,069.74
Answer: Lindsey's total investment in education is $18,000.
Since Lindsey's college will cost a total of $6000 per year for the next three years, her total investment in education will be .
The $26000 per year that's given in the question is the value of Lindsey's earnings if she chose to work at the local mall. This is the gain Lindsey foregoes in each of the three years in order to learn, and represents her opportunity cost or alternate costs.