Solving for Unknown Variables for Different Investment Needs Answer the requirements in the following two separate...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Solving for Unknown Variables for Different Investment Needs Answer the requirements in the following two separate cases. • For #1, Enter the percent rounded to two digits after the decimal; enter 2.04 for 2.044% or 2.05 for 2.045%. • For #2, Enter the answer rounded to one digit after the decimal; for example, enter 1.4 for 1.44 or 1.5 for 1.45. 1. At today's date, Etna Inc. has $44,000 that is deposited in an investment account until needed. It is anticipated that $111,000 will be needed at the end of 10 years to expand manufacturing. What approximate rate of interest is required to accumulate $111,000, assuming compounding on an annual basis? 2. Visi Inc. plans an addition to its building as soon as adequate funds are accumulated. The company has estimated that the addition will cost $220,000. At today's date, $90,600 cash is available for investment, and such a fund pays 6% interest (compounded annually). How many periods would be required to accumulate the $180,000? % Solving for Unknown Variables for Different Investment Needs Answer the requirements in the following two separate cases. • For #1, Enter the percent rounded to two digits after the decimal; enter 2.04 for 2.044% or 2.05 for 2.045%. • For #2, Enter the answer rounded to one digit after the decimal; for example, enter 1.4 for 1.44 or 1.5 for 1.45. 1. At today's date, Etna Inc. has $44,000 that is deposited in an investment account until needed. It is anticipated that $111,000 will be needed at the end of 10 years to expand manufacturing. What approximate rate of interest is required to accumulate $111,000, assuming compounding on an annual basis? 2. Visi Inc. plans an addition to its building as soon as adequate funds are accumulated. The company has estimated that the addition will cost $220,000. At today's date, $90,600 cash is available for investment, and such a fund pays 6% interest (compounded annually). How many periods would be required to accumulate the $180,000? %
Expert Answer:
Answer rating: 100% (QA)
1 To find the approximate rate of interest for Etna Inc FV PV1 rn 111000 440001 r10 Solve fo... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
(b) Briefly explain the following concepts. (i) Applying a functional transformation to the data such as logarithmic or a Box-Cox trans- formation. (ii) Return of a financial instrument. (iii)...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Wine Depot is planning for the future and would like you to prepare a present value analysis. Using the file ch7-07, complete a present value analysis for the following situations save the file...
-
How might a shareholders agreement influence a companys financial report-ing objectives?
-
Describe the information that should be disclosed in financial statements relating to an entity's accounting policies and estimation techniques.
-
For a batch rectifier with appreciable column holdup, why do tray compositions change less rapidly than they do for a rectifier with negligible column holdup, and why is the separation improved?
-
Explain the purpose of a business and describe how businesses are organised and structured.
-
Income statements for Thompson Company for 2011 and 2012 follow. Required a. Perform a horizontal analysis, showing the percentage change in each income statement component between 2011 and 2012. b....
-
The capital structure of a company during the whole of this current financial year has been as follows: Ordinary Shares $1 fully paid - market value $800,000 6% debentures ($100 par value) $212,000...
-
A city in the GTA is in the process of expanding its municipal waste collection services and is considering these two alternatives which will provide a similar service: a. In-house: Spend $1,000,000...
-
Provide arguments for why companies should include ethics in their strategy in order to reap long-term benefits.
-
Explain what is meant by the term negative interest rate. Why can interest rate never be negative?
-
In groups of five, discuss how the HR organization contributes to business results. What skills should HR leaders demonstrate?
-
Consumers often boycott companies that have exhibited unethical behavior. Discuss what is considered unethical behavior and companies that are known violators.
-
Why have companies in emerging markets become more competitive abroad?
-
Which of the following statements are true concerning the eye? Check all that apply. The far point of the normal eye is infinity Astigmatism refers to a defect in which the surface of the cornea is...
-
Evaluate the line integral, where C is the given curve. C x 2 dx + y 2 dy, C consists of the arc of the circle x 2 + y 2 = 4 from (2, 0) to (0, 2) followed by the line segment from (0, 2) to (4, 3)
-
Jan has two jobs during 2012. One employer withheld and paid FICA taxes on $66,600 of Jan's salary, and the other employer withheld and paid FICA taxes on $44,400 in salary paid to Jan. Calculate the...
-
Sally hires a maid to work in her home for $250 per month. The maid is 25 years old and not related to Sally. During 2012, the maid worked 10 months for Sally. a. What is the amount of Social...
-
Kent Pham, CPA, is a 45-year-old single taxpayer living at 169 Trendie Street, La Jolla, CA 92037. His Social Security number is 865-68-9635. In 2012, Kent's W-2 as the controller of a local...
-
What is the function of a steering gear?
-
A shaft running at \(1200 \mathrm{rpm}\) is connected to a second shaft by a Hooke's joint. The angle between the axes of the shafts is \(15^{\circ}\). Determine the velocity and acceleration of the...
-
Watt mechanism is capable of generating (a) approximate straight line (b) exact straight line (c) approximate circular path (d) exact circular path.
Study smarter with the SolutionInn App