25.An engineer who was contemplating retirement had $1.6 million in his investment portfolio.However, a severe recession caused his portfolio to decrease to only 55% of the originalamount, so he kept working. If he was able to invest his money at a rate of return of 9% peryear after the recession ended, how many years did it take for his account to get back to the$1.6 million value?A5 years6 years7 yearsD4 years

To find the years using the values as,

Answered: g retirement had $1.6 million in his ir…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume 30 years ago, you invested a lump sum and earned 4.65 percent interest, compounded annually. Today, you withdrew the proceeds of that investment, totaling $49,255. How much did you originally invest? (Round your answer to the nearest dollar and do NOT include a comma or dollar sign in your answer i.e. 12345) Numeric Response
You have just made your first $4,500 contribution to your individual retirement account. Assume you earn an annual return of 11.3 percent and make no additional contributions. What will your account be worth when you retire in 39 years?
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D Two years ago, Reggie invested $19,900.00. Today, he has $21,600.00. If Reggie earns the same annual rate implied from the past and current values of his investment, then in how many years from today does he expect to have exactly $38,000.00 O 0.00 years (plus or minus 0.05 years O 15.78 years (plus or minus 0.05 years O 22.35 years (plus or minus 0.05 years O 13.78 years (plus or minus 0.05 years O None of the above is within .05 percentage points of the correct answer
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g retirement had $1.6 million in his ir d his portfolio to decrease to only 559 ras able to invest his money at a rate - many years did it take for his accour