Home / Questions / Dismiss All Please Wait . . . Please Wait... Suppose a relative has promised to give yo...
Dismiss All
Please Wait . . .
Please Wait...
Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged. Assuming a constant interest rate of 9%, consider the present and future values of this gift, depending on when you become engaged.
Complete the first row of the following table by determining the value of the gift in one and two years with interest if you become engaged today and save the money.
Date Received 
Present Value 
Value in One Year 
Value in Two Years 

(Dollars) 
(Dollars) 
(Dollars) 

Today  1,000.00  selector 1
917.43 1,090.00 1,188.10 1,295.03 
selector 2
841.68 1,008.10 1,090.00 1,188.10 
In 1 year  selector 3
841.68 917.43 1,090.00 11,111.11 
1,000.00  
In 2 years  selector 4
841.68 917.43 1,188.10 123,456.79 
1,000.00 
Points:
Close Explanation
Explanation:
Now complete the first column of the previous table by computing the present value of the gift if you get engaged in one year or two years.
The present value of the gift is selector 1
greater
smaller
if you get engaged in two years than it is if you get engaged in one year.
Aug 23 2021 View more View Less
Which of the following portfolios with zero risk lies closest to the efficient frontier?A. Return = 7.8 percent, standard deviation = 3.0B. Return = 0 percent, standard d...
Jun 01 2021What is the mechanism of the following reaction?
Jun 19 2021Consider again the mortgage refinance problem faced by Dave and Jana in Problem 16. Assume that they have accepted the refinance offer of a 15year loan at 3 percent inte...
Apr 25 2020A simple random sample of 80 customers is selected from an account receivable portfolio and the sample mean account balance is $1250. The population standard deviation σ...
Apr 06 2020A Complex Number and Its Modulus Graph the complex number and find its modulus
Jun 21 2021The volume of a frustum of a cone is given by the formula , where is the radius of the small circle, is the radius of the larger circle, and is the height of the frust...
Jun 18 2021Evaluate the following indefinite integral. 2 da = Note: Don't forget your C! And be sure to use an uppercase C!
Apr 19 2021Select three shortterm financing instruments and three longterm financing instruments. Please write at least three well composed paragraphs describing what each instrum...
Aug 12 2021This problem continues the Draper Consulting, Inc., situation from Problem 262 of Chapter 2. Start from the trial balance and the posted Taccounts that Draper Consultin...
May 22 2020The system IS Initially rotating freely with angular velocity ω117 rad s when the inner rod Ais centered length se within he ollow cylinder Bass n he re. Determine the a...
Jul 04 2020