Question 6 5 pts Suppose you invested $7.216 in a business which guaranties to give you...

Question

Question

Answer 1

Answer #1

The investment would become $22073.91

Compound Interest Formula A= P(1+i) A = final amount including principal P = principal amount i = interest rate per year n =

Here, P = $7216

i = 15%

n = 8 years

Thus, A = $7216 X (1+0.15) ^ 8 = $22073.91

Answer 2

Similar Homework Help Questions

Suppose you've just deposited $4,000 in a bank account which earns an annual rate of return...

Suppose you've just deposited $4,000 in a bank account which earns an annual rate of return of 7%. How much will you have in the bank account after 6 years? (Work it out on a piece of paper before entering the answer.) (Round up your answer to two decimal point)
Suppose you want to buy a car today. If you can afford payments of $493 per...

Suppose you want to buy a car today. If you can afford payments of $493 per month and want to pay the loan back over the next 7 years. Assuming no down payment is required, how much can you borrow if the bank will charge you an annual percentage rate of 3% APR? (Work out the problem on separate sheet of paper before entering the answer.) Answer: Check Suppose you racked up $33317 of student loan and the interest is...
6) (2 pts) At the end of 2014 you invested $5000 into a mutual fund. You...

6) (2 pts) At the end of 2014 you invested $5000 into a mutual fund. You invested another $3,000 into the mutual fund at the end of 2015. You did not invest any money in 2016 or 2017 and by the end of 2018, the mutual fund investment was worth $11,900. What was the dollar weighted average annual return on your investment? (2 pts) An investment had an average return of 15% and a standard deviation of 20% over the...

Suppose for your future graduation present, suppose your uncle has just deposited $638 in your bank...

Suppose for your future graduation present, suppose your uncle has just deposited $638 in your bank account which gives 5% interest per year. How much will be in the account when you graduate in 15 years? (Work out the problem on a separate sheet of paper before entering the answer.) (Round your answer to two decimal point)
Suppose that you invested $100,000 in a business venture a number of years ago, your annual...

Suppose that you invested $100,000 in a business venture a number of years ago, your annual rate of return has been 11% and you have been given an offer of $283,942.00 to purchase your share of the business. How many years (round to the nearest whole year) have you been invested in the business (i.e. assume you invested on January 1, 200X and it is now December 31, 20XX)? Group of answer choices A. 8 years D. 10 years B. 11...
Question 1 1 pts You invested a sum of money 6 years ago at 10% simple...

Question 1 1 pts You invested a sum of money 6 years ago at 10% simple interest. Today the investment is worth $18,000. How much was your original investment? Express your answer in $to the nearest whole $.

Suppose you invested $1,000 in stocks 5 years ago and your account is now worth $2,150....

Suppose you invested $1,000 in stocks 5 years ago and your account is now worth $2,150. Please calculate the annual rate of return on this investment
need the algebra and excel functions. Suppose you invested $3,700 nine years ago into an investment...

need the algebra and excel functions. Suppose you invested $3,700 nine years ago into an investment which pays interest monthly. Your investment is currently worth $23,000. What is your monthly rate of return? (1.71%) Annual rate? (20.48%) Effective annual rate? (22.51%) Note: check out the EFFECT funct to calculate the EAR. Monthly EAR Algebra 20.5200 Finance Function #NUM!
Question 2 1 pts You invested $11,000, 11 years ago, and today the investment is worth...

Question 2 1 pts You invested $11,000, 11 years ago, and today the investment is worth $26,000. At what annual interest rate was the money invested, assuming the interest was compounded annually? Express your answer in % to the nearest 1/10%.

8 pts Question 6 Suppose that you are just about to retire, and you just turned...

8 pts Question 6 Suppose that you are just about to retire, and you just turned 65. Your personal and family health history is such that you forecast that you will live to age 78. In retirement, you would like to have purchasing power of $60,000 (i.e., real dollars) before taxes. Suppose, for our example, that you anticipate receiving $20,000 in inflation-adjusted Social Security payments each year. Hence, your portfolio will need to provide $40,000 in real dollars each year....