In 20 years you’d like to have $ 250,000 to buy a vacation home, but you have only $ 30,000. At what rate must your $ 30,000 be compounded annually for it to grow to $ 250,000 in 20 years? Use a spreadsheet to calculate your answer.
Answer to relevant Questionsa. Calculate the future sum of $ 5,000, given that it will be held in the bank 5 years at an annual interest rate of 6 percent. b. Recalculate part (a) using compounding periods that are (1) semiannual and (2) bimonthly. ...Ford’s current incentives include 4.9 percent financing for 60 months or $ 1,000 cash back for a Mustang. Let’s assume Suzie Student wants to buy the premium Mustang convertible, which costs $ 25,000, and she has no down ...You would like to have $ 50,000 in 15 years. To accumulate this amount you plan to deposit each year an equal sum in the bank, which will earn 7 percent interest compounded annually. Your first payment will be made at the ...Albert Pujols hit 47 home runs in 2009. If his home- run output grew at a rate of 12 percent per year, what would it have been over the following 5 years? What effect will diversifying your portfolio have on your returns?
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