You hope to buy your dream car four years from now. Today, that car costs $82,500

What is the future value of $6,200 invested for 23 years at 9.25 percent compounded annually?    A.  $22,483.60 B.  $27,890.87 C.  $38,991.07 D.  $41,009.13 E.  $47,433.47 Future value = $6,200 × (1 + .0925)23 = $47,433.47

26.	Today, you earn a salary of $36,000. What will be your annual salary twelve years from now if you earn annual raises of 3.6 percent?    A.  $55,032.54 B.  $57,414.06 C.  $58,235.24 D.  $59,122.08 E.  $59,360.45 Future value = $36,000 × (1 + .036)12 = $55,032.54

  

27.

You own a classic automobile that is currently valued at $150,000. If the value increases by 6.5 percent annually, how much will the automobile be worth ten years from now?    A.  $244,035.00 B.  $251,008.17 C.  $270,013.38 D.  $281,570.62 E.  $291,480.18 Future value = $150,000 × (1 + .065)10 = $281,570.62

28.

You hope to buy your dream car four years from now. Today, that car costs $82,500. You expect the price to increase by an average of 4.8 percent per year over the next four years. How much will your dream car cost by the time you are ready to buy it?    A.  $98,340.00 B.  $98,666.67 C.  $99,517.41 D.  $99,818.02 E.  $100,023.16 Future value = $82,500 × (1 + .048)4 = $99,517.41