Megan Brink is offered the possibility of investing $8,205 today at 9% interest per year in a desire to accumulate $15,000. How manyyears must Brink wait to accumulate $15,000? (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tablesprovided. Round your "PV of a single amount" to 4 decimal places and final answer to the nearest whole number.)Present ValueFuture ValueP (PV of a SingleAmount)Yearsyears Assume that you must estimate what the future value will be two years from today using the future value of 1 table. (PV of $1, EV of $1.PVA of $1, and FVA of $1)Which interest rate column and number-of-periods row do you use when working with the following rates? (Round percentageanswers to 2 decimal places.)Answer is complete but not entirely correct.Number of Periods1. 12% annual rate, compounded annually2.8% annual rate, compounded semiannually3. 12% annual rate, compounded quarterly4. 12% annual rate, compounded monthlyInterest Rate12.002.003.001.00%%%%28024

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Megan Brink is offered the possibility of investing $8,205 today at 9% interest per year in a desire to accumulate $15,000. How many years must Brink wait to accumulate $15,000? (PV of $1. EV of $1. PVA of S1, and EVA of 5) (Use appropriate factor(s) from the tables provided. Round your "PV of a single amount" to 4 decimal places and final answer to the nearest whole number.) Present Value Future Value p (PV of a Single Amount) Years years

Megan Brink is offered the possibility of investing $8,205 today at 9% interest per year in a desire to accumulate $15,000. How many years must Brink wait to accumulate $15,000? (PV of $1. EV of $1. PVA of S1, and EVA of 5) (Use appropriate factor(s) from the tables provided. Round your "PV of a single amount" to 4 decimal places and final answer to the nearest whole number.) Present Value Future Value p (PV of a Single Amount) Years years

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 lottery winner will receive $1 million at the end of each of the next ten years. What is the future value (FV) of her winnings at the time of her final payment, given that the interest rate is 8.5% per year? A. $14.84 million B. $19.95 million C. $18.95 million D. $13.84 million
Ronald has an investment opportunity that promises to pay him $52,000 in three years. He could earn a 6% annual return investing his money elsewhere. What is the most he would be willing to invest today in this opportunity? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.)
A lottery winner will receive $1 million at the end of each of the next twelve years. What is the future value (FV) of her winnings at the time of her final payment, given that the interest rate is 8.1% per year? A. $19.09 million B. $30.54 million C. $26.73 million D. $15.27 million
DJ has an investment that will pay him the following cash flows over the next 5 years: $2,250, $2,710, $3,070, $3,390, & $3,690 Typically his investments earn 6.20%, what is the future value of the investment's cash flows at the end of the 5 yrs? (Don't round factor values. Round Final Answer to 2 Decimal Places) Future value $_____
Sonia wants to have $13,000 in 8 years. Use Table 11-2 to calculate how much she should invest now (in $) at 6% interest, compounded semiannually in order to reach this goal. (Round your answer to the nearest cent.) $
Jane Bauer has won the lottery and has the following four options for receiving her winnings: Receive $100,000 at the beginning of the current year Receive $108,000 at the end of the year Receive $20,000 at the end of each year for eight years Receive $10,000 at the end of each year for 30 years Jane can invest her winnings at an interest rate of 8% compounded annually at a major bank. Use the appropriate present or future value table: FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1 Calculate the Present value for each of the above options. Round all answers to the nearest dollar. Present Value Option 1 $fill in the blank 1 Option 2 $fill in the blank 2 Option 3 $fill in the blank 3 Option 4 $fill in the blank 4 Which of the payment options should Jane choose?
Sonia wants to have $15,000 in 10 years. Use Table 11-2 to calculate how much she should invest now (in $) at 6% interest, compounded semiannually in order to reach this goal. (Round your answer to the nearest cent.) $ 8305.13
Helen Quick made an investment of $20,542.75. From this investment, she will receive $2,400 annually for the next 15 years starting one year from now. Click here to view the factor table What rate of interest will Helen's investment be earning for her? (Hint: Use Table 4.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to O decimal places, e.g. 25%.) Rate of interest %
Peter won a lottery and must decide among the following options: a. $260 at the beginning of every month for 5 years starting 3 years from now. b. $13,250 8.5 years from now. Money' is worth 3.4% compounded monthly. By how much the best option exceed the worst one, based on the present value of the offer?
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 %
Megan Brink is offered the possibility of investing $6,651 today at 6% interest per year in a desire to accumulate $10,000. How many years must Brink wait to accumulate $10,000?
Answer for part d and e only.

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