f you invest $17,500 today, how much will you have in each of the following instances? Use Appendix A as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. In 7 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value b. In 18 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value c. In 25 years at 6 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value

f you invest $17,500 today, how much will you have in each of the following instances? Use Appendix A as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. In 7 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value b. In 18 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value c. In 25 years at 6 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Future value

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 simple formula can help you estimate the number of years required to double your money. It's called the Rule of 72. You simply divide 72 by the interest rate (without the percent sign). For example, with an interest rate of 4%, your money will double in 72/4, or 18 years. For your initial post 1. Select one of the following questions to answer: If I invest $1000 at 3% interest, how long will take for my money to double? If I invest $1000 at 6% interest, how long will take for my money to double? If I invest $1000 at 8% interest, how long will take for my money to double? If I invest $1000 at 12% interest, how long will take for my money to double? 2. Select one of the following questions to answer: If $120 doubles in approximately 13 years, what is the interest rate? If $120 doubles in approximately 19 years, what is the interest rate? If $120 doubles in approximately 23 years, what is the interest rate? Answer the two questions in the instructions. You must include calculations…
Compute the future value in year 8 of a $3,500 deposit in year 1, and another $3,000 deposit at the end of year 3 using a 10 percent interest rate. Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Future value
Investment A requires you to pay $30,000 at t = 0 and you will receive $49,000 after five years. Investment B costs $73,000 and provides a cash flow of $128,000 after seven years. What is the rate of return for each of the two investments?
am. 201.
Bill Padley expects to invest $15,000 for 5 years, after which he wants to receive $22,039.50. What rate of interest must Padley earn? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value Present Value Table Factor Interest Rate %
You have $68,513 you want to invest. You are offered an investment plan that will pay you 4.58 percent per year for the first 20 years and 6.81 percent per year for the last 21 years. How much will you have (in $) at the end of the two periods? Answer to two decimals. < Previous
You estimate that you can save $3,900 by selling your home yourself rather than using a real estate agent. What would be the future value of that amount if invested for seven years at 5 percent? Use Exhibit 1-A. (Round FV factor to 3 decimal places to 2 decimal places.). Better if you use your calculator. and final answer Future value
Answer for part d and e only.
Suppose you wish to have $17,250 in 5 years. Use the present value formula to find how much you should invest now at 5% interest, compounded semiannually in order to have $17,250, 5 years from now. Then calculate the amount of interest. O $3,774.33 $4,312.50 $12,937.50 $13,475.67
If you invest $10,000 per period for the following number of periods, how much would you have in each of the following instances? Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. In 50 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
You will require $650 in 5 years. If you earn 5% interest on your funds, how much will you need to invest today in order to reach your savings goal? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
c. A person who invests $1, 600 each year finds one choice that is expected to pay 3 percent per year and another choice that may pay 4 percent. What is the difference in return if the investment is made for four years? Round your answer to the nearest dollar. (Hint: Use Appendox A-3 or the Garman/Forgue companion website.) Round Future Value of Series of Equal Amounts in intermediate calculations to four decimal places.

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