Bill O’Brien would like to take his wife, Mary, on a trip three
years from now to Europe to celebrate their 40th anniversary. He
has just received a $26,000 inheritance from an uncle and intends
to invest it for the trip. Bill estimates the trip will cost
$33,280. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and
PVAD of $1) (Use appropriate factor(s) from the tables
provided.)
What interest rate, compounded annually, must Bill earn to
accumulate enough to pay for the trip? (Round your interest
rate to the nearest whole percentage.)
Interest rate will be 9%
Working;
A | = | P*(1+i)^n | Where, | |||||
$ 33,280.00 | = | 26000*(1+i)^3 | A | Future value | = | $ 33,280.00 | ||
1.28 | = | (1+i)^3 | P | Current value | = | $ 26,000.00 | ||
1.28 ^(1/3) | = | 1+i | i | Interest rate | = | ? | ||
1.08576705 | = | 1+i | n | Time | = | 3 | ||
0.08576705 | = | i | ||||||
So, Interest rate will be | 9% |
Bill O’Brien would like to take his wife, Mary, on a trip three years from now...
I need help solving this problem. Bill O'Brien would like to take his wife, Mary, on a trip four years from now to Europe to celebrate their 40th anniversary. He has just received a $18541 inheritance from an uncle and intends to invest it for the trip. Bill estimates the trip will cost $25121 and he believes he can earn 5.00% annual interest, compounded annually, on his investment. How much will Bill need to pay, in additional to his inheritance,...
oter 5 Quiz 6 Submitted 8/30 Total points awarded Help Exit Bill O'Brien would like to take his wife, Mary, on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $26,000 inheritance from an uncle and intends to invest it for the trip. Bill estimates the trip will cost $30,000 and he believes he can earn 4% interest, compounded annually, on his investment. (EV of $1. PV of $1. EVA of...
Arnold and Helene would like to visit Austria in four years to celebrate their 25th wedding anniversary. Currently, the couple has saved $24,500, but they expect the trip to cost $28,500. 1-a. If they put $24,500 in an account that earns 8% interest, compounded annually, how much will they have in four years? (FV of $1, PV of $1, FVA of $1, and PVA of $1). (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.)...
Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends already are planning a trip to Europe after graduation in a little over three years. Leslie would like to contribute to a savings account over the next three years in order to accumulate enough money to take the trip. Assume an interest rate of 8 %, compounded quarterly. (FV of $1, PV of $ 1, FVA of $ 1, PVA of $ 1....
Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends already are planning a trip to Europe after graduation in a little over three years. Leslle would like to contribute to a savings account over the next three years in order to accumulate enough money to take the trip. Assume an interest rate of 6%, compounded quarterly (FV of $1. PV of $1. FVA of $1. PVA SI EVAD of $1 and PVAD...
Leslie McCormack is in the spring quarter of her freshman year of college. She and her friends already are planning a trip to Europe after graduation in a little over three years. Leslie would like to contribute to a savings account over the next three years in order to accumulate enough money to take the trip. Assume an interest rate of 16%, compounded quarterly. (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and...
Leslie McCormack is in the spring quarter of her freshman year of college. she and her friends already are planning a trip to Europe after graduation in a little over three years. Leslie would like to contribute to a savings account over the next three year in order to accumulate enough money to take the trip. assume an interest rate 14% compounded quarterly. A: https://ezto mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchurl=https%253A%252F%252Fm 110% art 2 Learn Sarved Help Leslie McCormack is in the spring quarter of...
Sand Explorers issues bonds due in 10 years with a stated interest rate of 7% and a face value of $220,000. Interest payments are made semi-annually. The market rate for this type of bond is 6%. Using present value tables, calculate the issue price of the bonds. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
John Rider wants to accumulate $80,000 to be used for his daughter’s college education. He would like to have the amount available on December 31, 2026. Assume that the funds will accumulate in a certificate of deposit paying 8% interest compounded annually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Answer each of the following independent questions. Required: If John were to...
1. For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) (Round your final answers to nearest whole dollar amount.) Present Value Future Value i n 1. $80,000 4.5% 9 2. $31,841 $94,000 16 3....