ZuoTi.Pro
Question

Leo received $7,500 today and will receive another $5,000 two years from today. He will invest...

Leo received $7,500 today and will receive another $5,000 two years from today. He will invest
these funds when he receives them and expects to earn a rate of return of 11.5 percent. What value
does he expect his investments to have five years from today?
A. $18,758.04
B. $18,806.39
C. $19,856.13
D. $20,314.00
E. $19,904.36

-How do you answer this question with a BA 2 Calculator and also by hand?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
Leo received $7,500 today and will receive another $5,000 two years from today. He will invest...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Marshall has received an inheritance and wants to invest a sum of money today that will...

    Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,000 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

  • Joe expects to receive a gift of $1,000 when he graduates one year from today. Joe...

    Joe expects to receive a gift of $1,000 when he graduates one year from today. Joe can invest his gift at 6% compounded annually and he would like to use the funds in four years to purchase an engagement ring for Mabel. How much will he have in four years to spend on a ring? A.$1,200.00 B.$1,180.00 C.$1,175.00 D.$1,191.02 E.$1,262.48

  • 22. Calculate the present value of $5,000 received five years from today if your investments pay...

    22. Calculate the present value of $5,000 received five years from today if your investments pay a. 6 percent compounded annually b. 8 percent compounded annually c. 10 percent compounded annually d. 10 percent compounded semiannually e. 10 percent compounded quarterly What do your answers to these questions tell you about the relation between present values and interest rates and between present values and the number of compounding periods per year? (LG 2-9) 23. Calculate the future value in five years of $5,000 received today if your...

  • Marshall has received an inheritance and wants to invest a sum of money today that will...

    Marshall has received an inheritance and wants to invest a sum of money today that will yield $5700 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today? (Use appropriate factor(s) from the tables provided.) A) $44,013.69 B) $114,000.00 C) $54,150.00 D) $57,000.00 E) $51,442.50

  • ted $5,000 ten years ago. He expected to have $13,000 today He has netther added nor...

    ted $5,000 ten years ago. He expected to have $13,000 today He has netther added nor withdrawn any money since his inital Burt invest investment. All interest was reinvested and compounded annually, As it turns out, he only has $11,500 in his account today Pick the true statement related to Burt's investment from below. Multiple Choice He camed simple interest rather than compound interest He earned a lower interest rate than he expected He did not earn any interest on...

  • How much would you have to invest today to receive the following? Use Appendix B or...

    How much would you have to invest today to receive the following? Use Appendix B or Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.    a. $15,250 in 11 years at 7 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)    b. $19,600 in 18 years at 11 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)    c....

  • Calculate the future value in five years of $5,000 received today if your investments pay a....

    Calculate the future value in five years of $5,000 received today if your investments pay a. 6 percent compounded annually b. 8 percent compounded annually c. 9 percent compounded annually d. 9 percent compounded semiannually e. 9 percent compounded quarterly What do your answers to these questions tell you about the relation between future values and interest rates and between future values and the number of compounding periods per year? (LG 2-9)

  • An inventor received a royalty payment from a licensee for $15,000.00 that he wants to invest...

    An inventor received a royalty payment from a licensee for $15,000.00 that he wants to invest over the next 35 years on an account that he expects to earn 7% per year. Calculate the total accumulation in the account at the end of this period, (a) using both the standard notation, and (b) the factor formula, and (c) checking with Excel.

  • you will receive $5,000 a year in real terms for the next 5 years. each payment will be received at the end of the peri...

    you will receive $5,000 a year in real terms for the next 5 years. each payment will be received at the end of the period with the first payment occurring one year from today. the relevant nominal discount rate is 10 percent and the inflation rate is 2 percent. what are your winnings worth today in real dollars ?

  • Chris Jones wishes to have $400,000 in a retirement fund 25 years from now. He can...

    Chris Jones wishes to have $400,000 in a retirement fund 25 years from now. He can create the retirement fund by making a single lump-sum deposit today. Use next table to solve the following problems. A. If he can earn 7 percent on his investments, how much must Chris deposit today to create the retirement fund? Round PV-factor to three decimal places. Round your answer to the nearest cent. Calculate your answer based on the PV-factor. $   Calculate your answer...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT