FIN 200: Assignment Workbook Week 9 Solution

FIN 200

Axia College of University of Phoenix (UoP)

Introduction to Finance: Harvesting the Money Tree

Finance 200 Assignment Workbook Week 9 Solution

Week 9 Checkpoint: Time Value of Money

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You must use the Present Value and Future Value Appendixes in your textbook in order to receive credit. You must also show your work.

1 What is the present value of:
a . $25,000 in 7 years at 8 percent?
b . $37,500 in 5 years at 10 percent?
c . $19,000 in 25 years at 6 percent?
d . $1,000,000 in 50 years at 16 percent?

2 Your aunt offers you a choice of:

Amount $ 60,000 in 40 years
Or
$ 850 today
Discount Rate 11%

From a pure financial perspective, which should you choose?

3 You invest a single amount of:
$ 15,000 for 5 years at 10%.
At the end of 5 years you take the proceeds and invest them for 12 years at 15
percent. How much will you have after 17 years?

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