Marty Neilson has just invested $130,000 in a restaurant that will provide him with an annual income of $18900.He expects to hold the investment for 8 years. What is the accounting rate of return (as a percentage)? ROUNDYOUR ANSWER TO 2 DECIMAL PLACES. DO NOT INCLUDE THE % SIGN IN YOUR ANSWER.

The objective of the question is to calculate the Accounting Rate of Return (ARR) for Marty…

Answered: Marty Neilson has just invested…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Mitchell Investments has offered you the following investment opportunity: $7,000 at the end of each year for the first 7 years, plus $6,000 at the end of each year from years 8 through 14, plus $3,000 at the end of each year from years 15 through 21. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest dollar. How much would you be willing to pay for this investment if you required a 8 percent rate of return?$ If the payments were received at the beginning of each year, what would you be willing to pay for this investment?$
Stuart Daniels estimates that he will need $26,000 to set up a small business in 7 years. (a) How much (in $) must Stuart invest now at 8% interest compounded quarterly to achieve his goal? (b) How much compound interest (in $) will he earn on the investment? $
A person who invests $1,200 each year finds one choice that is expected to pay 4 percent per year and another choice that may pay 7 percent. What is the difference in return if the investment is made for four years? Round your answer to the nearest dollar. (Hint: Use Appendix A-3 or the Garman/Forgue companion website.) Round Future Value of Series of Equal Amounts in intermediate calculations to four decimal places. $ The amount a person would need to deposit today with a 6 percent interest rate to have $4,000 in three years. Round your answer to the nearest dollar. (Hint: Use Appendix A-2 or the Garman/Forgue companion website.) Round Present Value of a Single Amount in intermediate calculations to four decimal places. $
Your client is 29 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $15,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. a. If she follows your advice, how much money will she have at 65? Do not round Intermediate calculations. Round your answer to the nearest cent. $ b. How much will she have at 70? Do not round Intermediate calculations. Round your answer to the nearest cent. $ c. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round Intermediate calculations. Round your answers to the nearest cent. Annual withdrawals if she retires at 65: $ Annual withdrawals if she retires at 70: $
You have $1,900 that you want to invest in your classmate’s start-up business. You believe the business idea to be great and expect to get $4,550 back at the end of three years. If all goes according to plan, what will be the annual return on your investment? (If you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to 2 decimal places, e.g. 8.72%.) The expected annual rate of return_____%
practice
A student wants to save for her retirement. At the end of every year, she deposits 475 in a brokerage account with an expected annual return of 4.3%. How much money will she have in the account in 30 years? Enter your answer as a number with 2 places of precision (i.e. 1.23). Do not include dollar signs or commas.
Your client is 32 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $7,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 11% in the future. a. If she follows your advice, how much money will she have at 65? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much will she have at 70? Do not round intermediate calculations, Round your answer to the nearest cent. 2$ c. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round intermediate calculations. Round your answers to the nearest cent. Annual withdrawals if she retires at 65: $ Annual withdrawals if she retires at 70: $
Use the attached present and future value tables to answer the following questions: Tom pays $2,400 per year for rent on the first of January each year. He wants to deposit an amount in his 6% investment today that will allow him to draw $2,400 each year for the next 5 years. How much will he need to deposit today in order to draw $2,400 per year for 5 years? Round percentages and ratios to the nearest tenth of a percent, dollars to nearest whole dollar ________dollars
You expect to receive $29,000 at graduation in two years. You plan on investing it at 10 percent until you have $164,000. How long will you wait from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Your uncle has agreed to deposit $3000 in your brokerage account at the beginning today for five years. You estimate that you can earn 9% per year on your investments. How much will you have in your account at the beginning of year 4?
You currently have $15,804. You plan on investing it at 20 percent per year until you have $68,555. How long will you wait until you achieve this goal? Enter the answer with 2 decimals (e.g. 1.23).

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Marty Neilson has just invested $130,000 in a restaurant that will provide him with an annual income of $18900. He expects to hold the investment for 8 years. What is the accounting rate of return (as a percentage)? ROUND YOUR ANSWER TO 2 DECIMAL PLACES. DO NOT INCLUDE THE % SIGN IN YOUR ANSWER.