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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9
Christian now has $500. How much would he have after 8 years if he leaves it invested at 5.2% with annual compounding? a. $753.92 O b. $712.98 O c. $750.06 O d. $766.48 O e. $526.00
1.A person buys a piece of lot P300,000 downpayment and 8 deferred quarterly payments of P8,000 each, starting 3 years from now . What is the present value of the investment if the rate is 12% compounded quarterly? 2. Mr Dela Cruz is left with an inheritance from his father. He has an option to receive P2.5 M at the end of 10 years, however he wishes to receive the money at the end of each year for 6 years. If interest rate is 8% how much would he receive every year?
Carlos's wife earns $17,600 per year. If Carlos dies, his family would require $51,900 to cover their living expenses. Some of the yearly expenses would be offset by $29,200 from stock dividends, but this is still not enough. How much insurance should Carlos have to cover the shortfall, given a 13.7% prevailing interest rate? O $3,000 O $37,000 O $74,000 O $250,000
Please answer quickly and correctly
Retirement assets total $4,861,000. Assume its invested for another 24 years and that assumes an annual inflation rate of 4.4 percent. To leave the future value of the $4,861,000 at the end of the 24 years, and maintain an inflation-adjusted lifestyle of $159,000 a year for all 24 years, the person’s investments would have to earn an average of ______ percent a year for the entire 24 years
Suppose you inherited $1,425,000 and invested it at 7.80% per year. How much could you withdraw at the beginning of each of the next 20 years? a. $142,985.98 b. $132,640.06 c. $135,671.09 d. $111,150.00 e. $29,532.45
you wanted to retire 35 years from now with SR 1.5 million. The interest rate is 5%, starting 1 year from now, you must invest in the end of each year: $ 16605 A O $ 16505 .B O $ 16405 .CO $ 16105.D O
Your uncle has $260,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the end of each year, starting at the end of this year. He also wants to have $25,000 left to give you when he ceases to withdraw funds from the account. For how many years can he make the $35,000 withdrawals and still have $25,000 left in the end? O a. 6.71 years O b. 11.98 years Oc. 9.39 years Od. 11.26 years Oe. 10.50 years

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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