HM 336 - Final Project

If you deposit $10,000 into an account earning 8% interest, how much will be in the account in 5 years?

$39,927.10

$14,693.28

$58,666.01

$6,805.83

$14,693.28

If you deposit $1,500 per year each year for the next 12 years at 12%, how much will be in the account at the end of 12 years?

$385.01

$9,291.56

$36,199.70

$5,843.96

$36,199.70

What is the present value of $5,000 received 8 years from now discounted at 8%?

$2,701,34

$28,733.19

$53,183.14

$9,254.65

$2,701,34

What is the present value of $8,000 per year for 4 years discounted at 12%?

$12,588.15

$38.234.62

$5,084.14

$24,298.79

$24,298.79

What is the present value of $4,000 per year for 3 years, followed by $3,000 per year for 5 years, all discounted at 8%?

$19,817.01

$27,548.30

$44,895.48

$35,156.28

$19,817.01

The manager of College Town Restaurant is considering placing a hot dog cart in front of his restaurant over the lunch hour.  After some careful analysis, he estimates that the cart will generate the following cash flows after expenses over its 7-year life:  years 1-4 - $1,000, year 5 - $0, years 6-7 - $1,000.  Calculate the present value of the project’s cash flows at 8%.

$7,453.48

$8,922.80

$5,206.37

$4,525.79

$4,525.79

The Blue and White Restaurant chain is planning a future promotional campaign.  It wants to spend $600,000 in 2 years, $400,000 in 4 years, and a final $300,000 in six years.  Assuming the company can invest its money at 10% per year, how much must the company set aside now – in total – to provide for its desired promotional expenses?

$938,415.33

Not enough information to answer this question

$3,615,846.70

$1,843,108.30

$938,415.33

Which amount is worth more today at a discount rate of 8%?

$20,000 received today

$25,000 received 2 years from now

$5,000 per year for six years

$19,000 received today

$5,000 per year for six years

You are about to graduate from college, and hope to retire in 40 years with $1,000,000.  Assuming you can get a return of 8% on your retirement investments, how much would you have to invest each year for the next 40 years to attain this goal?

$3,860.16

$83,860.16

$46,030.93

$11,924,613.33

$3,860.16