Using the Appendix for approximate time, under the rate column of 15%, we can look at the period corresponding to 2 and 3
For rate 15%, and FV factor = 2 (exact value = 2.011), the period is 5 & for FV factor = 3 (exact value = 3.059), the period is 8 years.
Time to double
Time to triple
At a growth interest) rate of 15 percent annually, how long will it take for a...
Determine the amount of money in a savings account at the end of 3 years, given an initial deposit of $6,500 and a 12 percent annual interest rate when interest is compounded: Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Future Value a. Annually b. Semiannually c. Quarterly Appendix A Future value of $1, FVF F...
At a growth (interest) rate of 7 percent annually, how long will it take for a sum to double? To triple? Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Time needed to double years Time needed to triple years
Questions Problem 16-02 Question of 15 Check My Work (1 remaining) Book 10. O Problem 16-02 You sold a stock for $100 that you purchased fifteen years earlier for $30. What was the holding period return and annualized compounded returns? Use Appendix A to answer the questions. Round your answers to the nearest whole number, Holding period retur: 90.00 3 Annualized compounded return: 16.59 3 de Feedback Incorrect Check it Works remaining) > Interest Factors for the Future Value of...
Water Nation is considering purchasing a waterpark in San Antonio, Texas, for $2.200,000. The new facility will generale annual net cash inflows of $505.000 for ten years Engineers estimate that the facility will remain useful for ten years and have no residual value. The company uses straight-line depreciation its owners want payback in less than five years and an ARR of 12 or more Management uses a 10% hurde rate on investments of this nature Click the icon to view...
1- Larry Davis borrows $73,000 at 12 percent interest toward the
purchase of a home. His mortgage is for 30 years. Use Appendix D
for an approximate answer, but calculate your final answer using
the formula and financial calculator methods.
a. How much will his annual payments be?
(Although home payments are usually on a monthly basis, we shall do
our analysis on an annual basis for ease of computation. We will
get a reasonably accurate answer.)
b. How much...
Please help me solve for the present value of each
payout
rate of interest 6%
Congratulations! You've won a state lotto! The state lottery offers you the following (after-tax) payout options: (Click the icon to view the payout options.) (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) 5 (Click the icon to view the future value factor table.) (Click the icon to view the future value annuity...
Your grandmother would like to share some of her fortune with you. She offers to give you money under one of the following scenarios (you get to choose) 1. $7,750 a year at the end of each of the next seven years 2. $50,250 (ump sum) now 3. $100,250 (ump sum) seven years from now Calculate the present value of each scenario using an 8 % interest rate. Which scenario yields the highest present value? Would your preference change if...
Assume you make the following investments: You invest a lump sum of $7,550 for four years at 14% interest. What is the investment's value at the end of four years? b. In a different account earning 14% interest, you invest $1,888 at the end of each year for four years. What is the investment's value at the end of four years? What general rule of thumb explains the difference in the investments' future values? (Click the icon to view the...
4-2 Future value calculation Without referring to tables or to the preprogrammed function on your financial calculator, use the basic formula for future value along with the given interest rate, i, and the number of periods, n, to calculate the future value interest factor in each of the cases shown in the following table. Compare the calculated value to the value in Appendix Table A-1. Case Interest rate, i Number of periods, 12% 11% 1 212 12% 120 1.254 1.405...
S12-7 (similar to) Question Help Assume you make the following investments: You invest a lump sum of $8,550 for three years at 12% interest. What is the investment's value at the end of three years? а. In a different account earning 12% interest, you invest $2,850 at the end of each year for three years. What is the investment's value at the end of three years? b. What general rule of thumb explains the difference in the investments' future values?...