Apple Computer wants to have $2.1 billion available 5 years from now in order to finance initial production of a device that, based on your behavior, will learn how to monitor and control nearly all of the electronic devices in your home, such as thermostat, coffee pot, TV, sprinkler system, etc. using Internet of Things (IOT) technology. The company expects to set aside uniformly increasing amounts of money each year to meet its goal. If the amount set aside at the end of year 1 is $100 million, how much will the uniform increase, G, have to be each year? Assume the investment funds grow at a rate of 18% per year.
Apple Computer wants to have $2.1 billion available 5 years from now in order to finance initial production of a device that, based on your behavior, will learn how to monitor and control nearly all of the electronic devices in your home, such as thermostat, coffee pot, TV, sprinkler system, etc. using Internet of Things (IOT) technology. The company expects to set aside uniformly increasing amounts of money each year to meet its goal. If the amount set aside at the end of year 1 is $100 million, how much will the uniform increase, G, have to be each year? Assume the investment funds grow at a rate of 18% per year.
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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Apple Computer wants to have $2.1 billion available
5 years from now in order to finance initial
production of a device that, based on your behavior,
will learn how to monitor and control nearly all
of the electronic devices in your home, such as
thermostat, coffee pot, TV, sprinkler system, etc.
using Internet of Things (IOT) technology. The
company expects to set aside uniformly increasing
amounts of money each year to meet its goal. If the
amount set aside at the end of year 1 is $100 million,
how much will the uniform increase, G, have to be
each year? Assume the investment funds grow at a
rate of 18% per year.
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