Assume you invest $19,000 today. How much will you have in six years at an interest rate of 9%? Future Value of $1: 8% 9% 10% 1 1.080 1.090 1.100 2 1.166 1.188 1.210 3 1.260 1.295 1.331 4 1.360 1.412 1.464 5 1.469 1.539 1.611 6 1.587 1.677 1.772 A. $31,863 B. $29,241 C. $33,668 D. 30,153

Assume you invest $19,000 today. How much will you have in six years at an interest rate of 9%? Future Value of $1: 8% 9% 10% 1 1.080 1.090 1.100 2 1.166 1.188 1.210 3 1.260 1.295 1.331 4 1.360 1.412 1.464 5 1.469 1.539 1.611 6 1.587 1.677 1.772 A. $31,863 B. $29,241 C. $33,668 D. 30,153

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 1On the day you retire you have $500,000 saved. You expect to live another 30 years during which…

A: Time value of money refers to the concept that money available today is worth more than the same…

Q: Assume you put $200 per month into a retirement account for 14 years, and the account has an APR of…

A: Present Value The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: You plan to invest in securities that pay 8.6%, compounded annually. If you invest $5,000 today, how…

A: The objective of this question is to find out how many years it will take for an investment of…

Q: You have an investment account that started with $4,000 10 years ago and which now has grown to…

A: A.) We are given Amount invested (Present value) =4000 No. of period(Nper)=10years Amount grown to…

Q: Complete using manaul computation You have 20 years left for your retirement. You wish to…

A: The time value of money is a concept in finance that evaluates the worth of future expected cash…

Q: Your current account balance is $16,500. You invested $3,000 12 years ago. What rate of return did…

A: Present value (PV) is the current value of a future payment or a stream of future payments,…

Q: Apply the concept from page 8-7 “Interest rates and compounding periods,” you have the opportunity…

A: Future Value = Present Value x (1 + r)^n Compounding Frequency = monthly

Q: You want to have $100,000 in your savings account 3 years from now, and you're prepared to make…

Q: What is the future value of $4,500 that you put into an account at 5% interest for 15 years?…

A: Future value = it the Part of Time value of money. Future value is the value of asets as on the…

Q: You invested 15,334.80 into an account that pays 4.40% interest. How much money will you have in 17…

A: Future value (FV) is the value of an investment or cash flow at a specific point in the future,…

Q: Acme Insurance is offering you a perpetuity that will pay you and your heirs $500,000 per year…

A: A perpetuity is a type of financial instrument or investment that provides a fixed stream of cash…

Q: Your insurance agent is trying to sell you an annuity that costs $80,000 today. By buying this…

A: Present value is an estimate of the present value of future cash values that may be received at a…

Q: What interest rate must your bank offer if you want your $2,730 invested today to grow to $3,470 in…

A: Present Value: The present value is the present sum of a series of fixed payments. The series of…

Q: . Example 2 You would like to have $500,000 in your retirement account when you retire in 25 Your…

A: The future value of money is considered as the sum of money received after a period of time at a…

Q: Your current account balance is $7,500. You invested $6,300 5 years ago. What rate of return did…

A: Answer) Future value = P×(1+r)^n r is interest rate P is amount n is years Given: Future value =…

Q: How much do you need to invest today to receive $7,500 in 8 years, if you can earn 3% on your…

A: INFORMATION: RATE 3% YEARS 8 PMT (MONTHLY DEPOSIT) 0 FUTURE VALUE $7,500

Q: Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of…

A: Annual deposit for 3 years = $ 1000 Annual interest rate = 5% Future value period = 4 Years

Q: What is the difference between simple interest and compound interest? Suppose you have $500 to…

A: Difference between Simple Interest and Compound interest Simple Interest is the interest that one…

Q: What is the most you would be willing to pay for an annuity that provides you with $13,700 at the…

A: Here,Annuity Received (PMT) is $13,700Interest Rate (r) is 5.5%Time Period (n) is 3 years

Q: If Carla Rice puts $200 in the bank for nine years and the money compounds at 8% annually how much…

A: The future worth of the amount invested today will be found by using the future value interest rate…

Q: Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first…

A: An annuity refers to a series of cash flows occurring at regular intervals. Here the cash flow…

Q: What is the present value of $1,300 due in 14 years at a 7 percent interest rate and 12 percent…

A: Presnet value refers to the current value of an investment that will be present at some future date…

Q: How much should an investor pay for an investment that pays an interest rate of 10% in form of…

A: The given details are:End of year payments: $100Payment at maturity: $3,000Interest rate:…

Q: You are opening an investment account that will earn 6.5% compounded annually. You will invest…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: what annual rate of return would your investment account need to generate if you make no future…

A: The annual rate of return: It is the sum of money earned over a period of 12 months period on…

Q: Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest…

A: Based on the given information, The semi-annual interest rate = 6% Time period = 20 Amount = $500 We…

Q: You currently have $10,000 in your bank account. You will invest this $10,000 and $750 every quarter…

A: For calculation of annual rate of return we need to calculate rate per quarter first. The future…

Q: Assume you want to retire in 35 years and save a $15,000 at the end of the first year. Assume you…

A: The time value of money refers to the concept the money when invested at an interest rate for the…

Question

Assume you invest

$19,000

today. How much will you have in six years at an interest rate of 9%?

Future Value of $1:

	8%	9%	10%
1	1.080	1.090	1.100
2	1.166	1.188	1.210
3	1.260	1.295	1.331
4	1.360	1.412	1.464
5	1.469	1.539	1.611
6	1.587	1.677	1.772

$31,863

$29,241

$33,668

30,153

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Question 3) The following questions are related to Continuously Compounded Interest: If you invest $2,000 at an annual interest rate of 8% compounded continuously, calculate the final amount you will have in the account after 20 years. If you invest $10,000 at an annual interest rate of 5% compounded continuously, calculate the final amount you will have in the account after ten years. Question 4) Suppose you want to save $100,000 for a down payment on a house in 15 years. If your savings account earns 9% compounded monthly, how much would you need to deposit now to reach this goal?
Problem 1: You can choose between two different investments: (A) an annuity that pays $10,000 each year for the next 6 years; (B) a perpetuity that pays $10,000 forever, starting 11 years from now. 1. Which investment do you choose, A or B, if the interest rate is 5%? What if it is 10%? Explain in words the reason behind your choices.
You are opening an investment account that will earn 11.5% compounded annually. You will invest $1,000 today, $5,000 one year from today, $18000 two years from today, $8,000 three years from today, and $12,000 four years from today. What will the value of your account be 4 years from today? Question 2 options: 53,225 59,065 51,775 54,635 58,705
How much do you have to deposit today so that beginning 11 years from now you can withdraw $12,000 a year for the next 6 years (periods 11 through 16) plus an additional amount of $24,000 in the last year (period 16)? Assume an interest rate of 9 percent.
Help me with detail explanation I will give Upvote
Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest is compounded semiannually. If you make 20 consecutive semiannual deposits of $500 each, with the first deposit being made today, what will your balance be at the end of Year 20? Group of answer choices $52,821.19 $57,900.83 $58,988.19 $62,527.47 $64,131.50
2. Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest is compounded semiannually. If you make 20 consecutive semiannual deposits of $500 each, with the first deposit being made today, what will your balance be at the end of Year 20? $57,900.83 $58,988.19 O $52,821.19 O $64,131.50 O $62,527.47
Assume you invest $15,000 today. How much will you have in six years at an interest rate of 9%? Future Value of $1: 8% 123456 1.080 1.166 1.260 1.360 1.469 1.587 OA. $23.805 OB. $25,155 OC. $26.580 OD. $23,085 9% 1.090 1.188 1.295 1.412 1.539 1.677 10% 1.100 1.210 1.331 1.464 1.611 1.772 MAKED ہے
6
You plan to invest $5,000 into an account. If you would like to have $10,000 in 15 years, what rate of return must you earn? Question 5 options: 6.02% 5.24% 4.73% 7.55% 7.11%
How long will it take $52,000 placed in a savings account at 10% interest to grow into $77,000? 5.12 years O 3.12 years O4.12 years O 6.12 years
Y8