A B C D E F G H J K L M N 2 PROBLEM (1-4) 3 4 5 (A) If you want to have $250 in 5 years and you can earn an annual return of 7%, how much must you invest today? Be sure to use cell references and make sure that your answer appears as a positive value. 6 (B) If you make a one-time deposit today of $800 you can earn 10% per year, how much would you have in your account after 15 years? Be sure to use cell references and remember that 7 deposits from you are outflows. 8 9 (C) If your investment of $1,254 declined to $435 in 6 years, what compounded annual rate of return would you have earned? Be sure to use cell references and to convert your answer to a percent rounded to two places after the decimal point. 10 (D) If you can earn 5% per year, precisely how many years would it take for your investment of $450 to turn into $1,200? Be sure to use cell references and display your answer rounded 11 to two places after the decimal point. 12 13 TIME VALUE OF MONEY: LUMP SUMS 14 15 (A) (B) (C) (D) 16 PV 17 FV 18 г 19 n 20 21

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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(A) If you want to have $250 in 5 years and you can earn an annual return of 7%, how much must you invest today? Be sure to use cell references and make sure that your answer appears
as a positive value.
6
(B) If you make a one-time deposit today of $800 you can earn 10% per year, how much would you have in your account after 15 years? Be sure to use cell references and remember that
7 deposits from you are outflows.
8
9
(C) If your investment of $1,254 declined to $435 in 6 years, what compounded annual rate of return would you have earned? Be sure to use cell references and to convert your answer
to a percent rounded to two places after the decimal point.
10 (D) If you can earn 5% per year, precisely how many years would it take for your investment of $450 to turn into $1,200? Be sure to use cell references and display your answer rounded
11 to two places after the decimal point.
12
13 TIME VALUE OF MONEY: LUMP SUMS
14
15
(A)
(B)
(C)
(D)
16
PV
17
FV
18
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19
n
20
21
Transcribed Image Text:A B C D E F G H J K L M N 2 PROBLEM (1-4) 3 4 5 (A) If you want to have $250 in 5 years and you can earn an annual return of 7%, how much must you invest today? Be sure to use cell references and make sure that your answer appears as a positive value. 6 (B) If you make a one-time deposit today of $800 you can earn 10% per year, how much would you have in your account after 15 years? Be sure to use cell references and remember that 7 deposits from you are outflows. 8 9 (C) If your investment of $1,254 declined to $435 in 6 years, what compounded annual rate of return would you have earned? Be sure to use cell references and to convert your answer to a percent rounded to two places after the decimal point. 10 (D) If you can earn 5% per year, precisely how many years would it take for your investment of $450 to turn into $1,200? Be sure to use cell references and display your answer rounded 11 to two places after the decimal point. 12 13 TIME VALUE OF MONEY: LUMP SUMS 14 15 (A) (B) (C) (D) 16 PV 17 FV 18 г 19 n 20 21
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