Ben Watson found $25,000 lying on the sidewalk and decided to invest the money. He believes that
Question:
Ben Watson found $25,000 lying on the sidewalk and decided to invest the money. He believes that he can earn a 10 percent rate (compounded annually) on his investment for the first four years, 12 percent for the following three years, and 15 percent for the following five years.
a. How much money will Ben have at the end of four years, seven years, and twelve years?
b. If someone offered to pay him $36,000 at the end of four years for the $25,000 should he accept? Why or why not?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
a Dollar amount 25000 x Future value factor for i 10 and n 4 2500...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
How much money would you have at the end of 10 years if you made deposits of $4,000 at the end of every three months into an investment that accumulated at 9 compounded quarterly
-
How much more will you have in your RRSP 30 years from now if you start to contribute $1000 per year at the end of this year, instead of waiting five years to begin contributing $1000 at each...
-
How much more will you have in your RRSP 30 years from now if you make fixed contributions of $3000 at the end of each of the next 30 years, instead of waiting 15 years and making annual...
-
Read each case carefully and, as determined in the Internal Revenue Code of Puerto Rico, identify the deductions, calculate the amount of deductions and what the determined contribution would be. and...
-
Bracey Company manufactures and sells one product. The following information pertains to the company's first year of operations: Variable cost per unit: Direct materials...
-
3. Suppose the market is wild; it is modeled by . (a) What is the value of a Call? (b) What is the value of a Put? (c) Explain both answers in terms of finance.
-
Consider a family of call options on a non-dividend-paying stock, each option being identical except for its strike price. The value of the call with strike price \(K\) is denoted by \(C(K)\). Prove...
-
FlashCo. manufactures 1-GB flash drives (jump drives). Price and cost data for a relevant range extending to 200,000 units per month are as follows: Sales price per unit (current monthly sales volume...
-
A circuit is comprised of a 1 volt DC voltage source, and two 1k resistors in series. The voltage across each resistor is theoretically 0.5 volts. a. If a voltmeter is used with internal resistance...
-
Write a function to add two floating point numbers. Determine the integer floor of the sum. The floor is the truncated float value, i.e. anything after the decimal point is dropped. For instance,...
-
Compute the present value of the payment patterns provided below, given an 8 percent discount rate. a. $50 at the end of Year 2; $100 at the end of Year 5; $80 at the beginning end of Year 8. b. $100...
-
Rudnicki Corporation raises money by issuing bonds. The bond agreement states that Rudnicki must make interest payments in the amount of $40,000 at the end of each year for ten years and make a...
-
Let A be an m x n matrix of rank r. (a) Suppose C = (A B) is an m à k matrix, k > n, whose first n columns are the same as the columns of A. Prove that rank C ¥ rank A. Give an example...
-
On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances: Accounts Debit Credit Cash $ 26,000 Accounts Receivable 48,000 Allowance for Uncollectible Accounts $...
-
ACC 111 Project Information - Project 1 - Why Accounting/Business/Human Resources, etc. This Project will consist of a discussion of why you chose your current major. In your conclusion, state the...
-
Shapp's Shake Shack ("the Shake Shack") has an extremely secretive recipe for cooking burgers in its restaurant. The Shake Shack considers this recipe a trade secret, as that is one of the reasons it...
-
Janet is trying to implement a workplace policy and is seeking your support. First, she convinces you to sign a petition in favor of the policy change. Later she asks you to present to the board of...
-
Pursuant to the theory of stakeholder management, the following groups have a stakeholder interest in the management of large publicly held corporations: 1. Employees 2. Consumers 3....
-
Maci Co. had the following transactions during the current period. June 12 Issued 60,000 shares of \(\$ 5\) par value common stock for cash of \(\$ 370,000\). July 11 Issued 1,000 shares of \(\$...
-
Write a paper by answer the following question: Should Recycling Be Mandatory?
-
In standard actuarial notation, the quantity t p 50 denotes the probability that, on his 50th birthday, an individual will survive for a further t years. Under the Weibull model of mortality, t p 50...
-
The following balance sheet and income statement data were taken from the records of L. L. Beeno for the year ended December 31, 2015: Prepare the operating section of the statement of cash flows,...
-
The following information was taken from the IFRS-based 2012 financial statements published by Carrefour, a French retailer (in million euros): Income before tax ..............552 Tax...
-
The following events occurred during 2015 for Frames Unlimited: 1. Purchased inventory for $60,000 in cash. 2. Recorded $40,000 in insurance expense for the portion of an insurance policy acquired in...
-
Explain a typical structural engineering project shown in figure. Planning Preliminary structural design Load estimation Structural analysis Safety/serviceability Yes Construction No Revised...
-
What are the 4 specialties of structural engineering? Any resources for core principles of structural engineering?
-
what are the role of structural analysis in structural engineering? What is the difference between structural engineering and structural analysis?
Study smarter with the SolutionInn App