How much would you have to deposit today if you wanted to have $54,000 in five years? Annual interest rate is 8%. (PV of $1. FV of $1. PVA of $1. and FVA of $1) (Use appropriate factor (s) from the tables provided. Round your answer to the nearest whole dollar.) Assume that you are saving up for a trip around the world when you graduate in two years. If you can earn 7% on your investments, how much would you have to deposit today to have $14,500 when you graduate? (Round your answer to 2 decimal places.) Calculate the future value of an investment of $643 for eleven years earning an interest of 8%. (Round your answers to 2 decimal places.) Would you rather have $643 now or $1,000 eleven years from now?

Instructions are listed below.

Explanation:

Giving the following information:

A) How much would you have to deposit today if you wanted to have $54,000 in five years? The annual interest rate is 8%.

We need to use the following formula:

PV = FV / (1+i) ^n

PV = 54,000 / (1.08^5) = $36,751.49

B) Assume that you are saving up for a trip around the world when you graduate in two years. If you can earn 7% on your investments, how much would you have to deposit today to have $14,500 when you graduate?

PV = 14,500/1.07^2 = $12,664.86

C) Calculate the future value of an investment of $643 for eleven years earning an interest of 8%.

FV = PV * (1+i) ^n

FV = 643*1.08^11 = $1,499.24

D) Would you rather have $643 now or $1,000 eleven years from now?

It depends on the interest rate. We will assume 8%.

PV = 1000/1.08^11 = 428.88

It is better to have $643 today.