Solve the following problem using either Table 11-1 or Table 11-2 from your text. When necessary, create new table factors. (Round new table factors to five decimal places, round dollars to the nearest cent and percents to the nearest hundredth of a percent) You wish to have $16,250 in 8 years. How much should you invest now at 6% interest, compounded annually in order to have $16,250, 8 years from now? $1,916.27 O $10,067.20 $10,195.41 O$12,871.46

Solve the following problem using either Table 11-1 or Table 11-2 from your text. When necessary, create new table factors. (Round new table factors to five decimal places, round dollars to the nearest cent and percents to the nearest hundredth of a percent) You wish to have $16,250 in 8 years. How much should you invest now at 6% interest, compounded annually in order to have $16,250, 8 years from now? $1,916.27 O $10,067.20 $10,195.41 O$12,871.46

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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You estimate that you can save $9,000 by selling your home yourself rather than using a real estate agent. What would be the future value of that amount if invested for five years at 6 percent? I need help to use appropriate factor(s) from the tables provided when it comes to rounding the time value factor to 3 decimal places and final answer to 2 decimal places. Future value= ???
Can I have an answer for this one? I need solution
Using a present value table (Table 6-4 and Table 6-5), calculate the present value for the following: Note: Use the appropriate value(s) from the tables provided and final answers to the nearest whole dollar. Required: a. A car down payment of $10,000 that will be required in two years, assuming an interest rate of 10%. b. A lottery prize of $22.0 million to be paid at the rate of $1,100,000 per year for 20 years, assuming an interest rate of 10%. c. The same annual amount as in part b, but assuming an interest rate of 14%. d. A financing lease obligation that calls for the payment of $34,000 per year for 10 years, assuming a discount rate of 8%. a. Present value b. Present value c. Present value d. Present value
Find the required value for each problem. Show the formula used and the counts for each problem. 6. How much more would you earn in three years if you invest $ 10,000 at a compound annual interest rate of 5.75%, instead of at a simple interest rate of 5.75%? 7. What would be the compound annual interest rate you would need to double your investment of $ 1,000 in three years? 8. If your bank pays you 5% annual interest, compounded monthly, how much would you have in ten years if you invest $ 1,000 today? 9. How much would you have to deposit today in a bank account that pays 9.25% annual interest, compounded quarterly, if you expect to have $20,000 at the end of five years? 10. Suppose you invested $ 2,500 in the business that a friend opened and in three years this friend returned $ 3,700 to you. How much was the return on your investment in your friend's business?
Hi There! I solved the problem below, but can you answer the question and put everything on an excel spreadsheet and show the formulas please for the questions below. You are offered the opportunity to put some money away for retirement. You will receive 10 annual payments of $5,000 each beginning in 26 years. If you desire an annual interest rate of 12% compounded monthly, answer the following two questions: How much would you be willing to invest today? How much would the money (that you will be willing to invest today) be worth at the end of your last payment (i.e., in year 35)? Amount that you would be willing to invest today = PV = $5,000/(1.01)26*12 + $5,000/(1.101)27*12 + $5,000/(1.01)28*12 + $5,000/(1.01)29*12 + $5,000/(1.01)30*12 + $5,000/(1.01)31*12 + $5,000/(1.01)32*12 + $5,000/(1.01)33*12 + $5,000/(1.01)34*12 + $5,000/(1.01)35*12 = $1,388.638 Amount that would the money worth at the end of your last payment = FV = $1388.64 * (1+ 0.01)35*12 = $90691.52
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you have just won the lottery and will receive $460,000 in one year. you will receive payments for 21 years, and the payments will increase 4 percent per year. if the appropriate discount rate is 11 percent, what is the present value of your winnings? Please explain how to solve using the financial calculator to show and explain steps thanks
You have $68,513 you want to invest. You are offered an investment plan that will pay you 4.58 percent per year for the first 20 years and 6.81 percent per year for the last 21 years. How much will you have (in $) at the end of the two periods? Answer to two decimals. < Previous
You estimate that you can save $3,900 by selling your home yourself rather than using a real estate agent. What would be the future value of that amount if invested for seven years at 5 percent? Use Exhibit 1-A. (Round FV factor to 3 decimal places to 2 decimal places.). Better if you use your calculator. and final answer Future value
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What is the present value of $3,000 to be received 2 years from now, if the discount rate is: (a) 6%, (b) 10%, and (c) 13% ? 1. Use the appropriate table (Appendix C: Table 1) to answer the above questions. 2. Use the formula shown at the bottom of Appendix C. Table 1, to answer the above questions. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the formula shown at the bottom of Appendix C, Table 1, to answer the above questions, (Round "PV Factor" to 5 decimal places and "PV values" to 2 decimal places.) Future after-tax cash Bow Cash flow received at the end of year (a) (b) [(0) Answer is complete but not entirely correct. Rate 6% 10% 13% PV Factor 0.89000 $ 0.82645 $ 0.78315 S PV < Required 1 7,553 18,406 2,669.99 2,479.34 2,349 44 **
You want to buy a nice road bike. You place $2,400 each year in an investment account that earns 4% compounded annually. How much will be in the account after (a) two years, (b) three years, or (c) four years? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (EV of $1. PV of $1. EVA of $1, and PVA of $1) a. b. C Annuity Annual Interest Payment Rate Compounded $ 2,400 2,400 2,400 4% Annually 4% Annually 4% Annually Period: Invested 2 years 3 years 4 years Future Value of Annuity

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