You expect to receive a payout from a trust fund in 5 years. The payout will be for $11,400. You plan to invest the money at an annual rate of 6.2 percent until the account is worth $19,600. How many years do you have to wait from today? Multiple Choice 12.45 years 9.01 years 14.01 years 10.51 years 12.61 years Pre

You expect to receive a payout from a trust fund in 5 years. The payout will be for $11,400. You plan to invest the money at an annual rate of 6.2 percent until the account is worth $19,600. How many years do you have to wait from today? Multiple Choice 12.45 years 9.01 years 14.01 years 10.51 years 12.61 years Pre

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
You expect to receive $3.500 upon your graduation and will invest your windfall at an interest rate of 51 percent per quarter until the account is worth $5,050. How many years do you have to wait until you reach your target account value? Multiple Choice 19.40 years 16 82 years 15.77 years 18:02 years 1815 years
You expect to receive $11,000 at graduation in two years. You plan on investing it at 8 percent until you have $100,000. How long will you wait from now? Multiple Choice 34.36 years 28.68 years 33.75 years 26.68 years 30.68 years
You have $7,500 and will invest the money at an interest rate of .26 percent per month until the account is worth $13,000. How many years do you have to wait until you reach your target account value? Multiple Choice 16.48 years 15.45 years 17.65 years 19.01 years 17.90 years
You would like to save a million dollars by depositing $25,000 at the end of year into an account that pays 8% interest annually. How long will it take you to achieve your savings goal? Group of answer choices 18.65 years 12.35 years 20.0 years 40.00 years 37.04 years
You expect to receive a payout from a trust fund in 5 years. The payout will be for $12,200. You plan to invest the money at an annual rate of 6.9 percent until the account is worth $20,800. How many years do you have to wait from today?
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You plan on saving $5,200 this year, nothing next year, and $7,500 the following year. You will deposit these amounts into your investment account at the end of each year. What will your investment account be worth at the end of year three if you can earn 8.5 percent on your funds? $13,528.12 $13,621.57 $13,907.11 14,526.50
After retirement, you expect to live for 25 years. You would like to have $91,000 in income each year. How much should you have saved in your retirement account to receive this income if the annual interest rate is 9 percent per year? (Assume that the payments start one year after your retirement) Multiple Choice $1,472.33173 $893,85474 $2,275,000.00 $101,089.74
Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $160,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment? O 2.28% O 2.20% O 2.22% 2.33% 2.59%
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