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d a,b,c) Baltar Labs invests $1,000 today, at a rate of 8% for 7 years. a. How much will the investment be worth aŌer the 7 years have passed? b. How much compound interest is earned in year 7? c. How much simple interest is earned in ye

d a,b,c) Baltar Labs invests $1,000 today, at a rate of 8% for 7 years. a. How much will the investment be worth aŌer the 7 years have passed? b. How much compound interest is earned in year 7? c. How much simple interest is earned in ye

Essentials Of Investments
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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(Need a,b,c)

 

Baltar Labs invests $1,000 today, at a rate of 8% for 7 years.

 

a. How much will the investment be worth aŌer the 7 years have passed?

 

b. How much compound interest is earned in year 7?

 

c. How much simple interest is earned in year 7

Less Less Less Add Year Statement Showing NPV - Amount in Million ($) 0 1 2 Sales Revenue Operating Cost Deprecation (Cost/Life) EBT Taxes @ 30% EAT (EBT-Tax) Non Cash Dep. Cost of New Machine Net Annual Cash Flow PVIF @ 11% in Working PVIF @ 11% in Table PVIF(B) Pv of Cash Flow @ 11% ( A*B) NPV @ 11% of PVIF 0 0 0 0 0 0 0 -600 -600 1 1 -600 6029.80 4100 310 200 4100 310 200 3590 1077 2513 200 0 2713 2713 1/(1+R) ^N 1/(1+R)^N 0.9009 0.8116 2444.14 2201.93 3590 1077 2513 200 0 4100 310 200 3 3590 1077 2513 200 0 2713 1/(1+R)^N 0.7312 1983.72
Transcribed Image Text:Less Less Less Add Year Statement Showing NPV - Amount in Million ($) 0 1 2 Sales Revenue Operating Cost Deprecation (Cost/Life) EBT Taxes @ 30% EAT (EBT-Tax) Non Cash Dep. Cost of New Machine Net Annual Cash Flow PVIF @ 11% in Working PVIF @ 11% in Table PVIF(B) Pv of Cash Flow @ 11% ( A*B) NPV @ 11% of PVIF 0 0 0 0 0 0 0 -600 -600 1 1 -600 6029.80 4100 310 200 4100 310 200 3590 1077 2513 200 0 2713 2713 1/(1+R) ^N 1/(1+R)^N 0.9009 0.8116 2444.14 2201.93 3590 1077 2513 200 0 4100 310 200 3 3590 1077 2513 200 0 2713 1/(1+R)^N 0.7312 1983.72
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