For the year ending December 31, 2017, sales for Company Y were $61.21 billion. Beginning January 1, 2018 Company Y plans to invest 7.5% of their sales amount each year and they expect their sales to increase by 3% each year over the next three years. Company Y invests into an account earning an APR of 1.8% compounded continuously. Assume a continuous income stream. How much money will be in the investment account on December 31, 2020? Round your answer to three decimal places. billion dollars How much money did Company Y invest in the account between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. billion dollars How much interest did Company Y earn on this investment between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. If intermediate values are used, be sure to use the unrounded values to determine the answer. billion dollars

For the year ending December 31, 2017, sales for Company Y were $61.21 billion. Beginning January 1, 2018 Company Y plans to invest 7.5% of their sales amount each year and they expect their sales to increase by 3% each year over the next three years. Company Y invests into an account earning an APR of 1.8% compounded continuously. Assume a continuous income stream. How much money will be in the investment account on December 31, 2020? Round your answer to three decimal places. billion dollars How much money did Company Y invest in the account between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. billion dollars How much interest did Company Y earn on this investment between January 1, 2018 and December 31, 2020? Round your answer to three decimal places. If intermediate values are used, be sure to use the unrounded values to determine the answer. billion dollars

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Three months ago, Jim purchased $11,000 of U.S. Treasury bonds. These bonds have a 30-year maturity period, and they pay dividends every three months at an APR of 17%. However, today's interest rates for similar securities have risen to a (17+1)%APR (compounded quarterly). In view of the interest-rate increase to (17+1)%, what is the current value of Jim's bonds today?
Problem 4: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years later, you borrow P50,000 from a bank at 20% annual interest and invest in the fund. Two years later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal you start taking P20,000 per year out of the fund. After 5 withdrawals you withdraw the balance in the fund. How much was withdrawn?
Globo-Chem Co. is expected to generate a free cash flow (FCF) of $1,065.00 million this year (FCF, = $1,065.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF, and FCF,). After the third year, however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCF.). Assume the firm has no nonoperating assets. If Globo-Chem Co.s weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Globo-Chem Co.? (Note: Round all intermediate calculations to two decimal places.) O $21,183,44 million O $3,183.42 million $17,652.87 million $23,939.64 million Globo-Chem Co.s debt has a market value of $13,240 million, and Globo-Chem Co. has no preferred stock, If Globo-Chem Co. has 600 million shares of common stock outstanding, what is Globo-Chem Co.s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $8.09 O $6.35 O…
Hale College predicts that in 18 years it will take $200,000 to attend the college for years. Emma has a substantial amount of cash and wishes to invest a lump sum of money for her child college fund. How much should Emma put aside in an account with an APR of 9% compounded monthly in order to have $200,000 in the account in 18 years? Round your answer to the nearest cent, if necessary.
Please
You know that paying yourself by depositing money in a savings account is a prudent start to your retirement plan. You determined that, based on your other obligations, you can save 6,375.00 per year via an annual, single year-end deposit. You are 35 years old now, so your money will grow for the next 30 years until you turn 65. You will open a savings account at the Wells Fargo branch near your home. Its savings accounts are paying 6% interest. The following table shows the future value factors for various periods and interest rates: Future Value of an Annuity Factor Year 2% 3% 5% 6% 8% 9% 10% 10 10.950 11.460 12.578 13.180 14.487 15.190 15.937 12 13.412 14.190 15.917 16.870 18.977 20.140 21.384 15 17.293 18.600 21.578 23.270 27.152 29.360 31.772 20 24.297 26.870 33.066 36.780 45.762 51.160 57.274 25 32.030 36.460 47.726 54.860 73.105 84.700 98.346 30 40.567 47.570 66.438 79.060 113.282 136.300 164.491 35 49.994 60.460 90.318 111.430 172.314 215.700…
12) Use the model A = Pert, where A is the future value of P dollar invested at interest rater compounded continuously or n times per year for t years. If $9,000 is invested in an account earning 5.5% interest compounded continuously, determine how long it will take the money to double. Round up to the nearest year. %3D
don't provide handwritten solution
9 A one-year investment has quarterly returns of 2.0% in Q1, -15.6% in Q2, 13.7% in Q3 and 9.1% in Q4. What is its total annual return (i.e., its compound annual growth rate or CAGR)? Give your answer in percent using two decimals (e.g., for 12.346% write 12.35).
4) Periodic maintenance and rebuild costs is an example about cash inflow estimates. Select one: True False 5) When we have a situation that the payment does not start at the end of period 1, then the series is called shifted series Select one: True False 6) In case of an effective interest rate for continuous compounding, the compounding frequency value is approximate to infinity. Select one: True False
You borrow $9,500 at 14% per year and will pay off the loan in three equal annual payments with the first occurring at the end of the fourth year after the loan is made. The three equal annual payments will be $6,062.4. Which of the following is true for your first payment at the end of year 4? O Interest = $0; principal = $6,062.4 Interest = $1,330; principal = $4,732.4 Interest = $6,062.4; principal = $0 Interest = $1,970.45; principal = $4,091.95
Suppose that on September 30, 2021, a person opened an investment account with an initial deposit of $20,000. The account guarantees to pay interest at a nominal annual rate of 6%, compounded monthly. The person plans to deposit $3,000 into the account at the end of each and every month starting on October 31, 2021 and ending on March 31, 2024 (a total of 30 additional deposits). (a) How much money will be in the account after the 30th additional deposit is made? (b) What is the total amount of interest that will be earned over the 30-month planning horizon? (c) What is the effective annual interest rate that will be earned? Express your answer to the nearest tenth of a percent, i.e., in the form xx.x%.