Question: How much will $10,000 be worth after 25 years if it earns: a. 6% compounded semiannually? b. 7%compoundedsemiannually? c. 8% compounded semiannually?

How much will $10,000 be worth after 25 years if it earns:
a. 6% compounded semiannually?
b. 7%compoundedsemiannually?
c. 8% compounded semiannually?

Step by Step Solution

★★★★★

3.40 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Given PV 10000 Term 25 years m 2 n m Term 225 ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

711-B-C-F-P-V (405).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Q:

Annual contributions of $1000 will be made to a TFSA for 25 years. The contributor expects investments within the plan to earn 7% compounded annually. What will the TFSA be worth after 25 years if...

Q:

Johan recently received his annual performance bonus from his employer. He has set up an investment savings plan to which he will contribute $2000 each year from his bonus and $400 per month from his...

Q:

How much more will an investment of $10,000 be worth after 25 years if it earns 9% compounded annually instead of 8% compounded annually? Calculate the difference in dollars and as a percentage of...

Q:

Q1. Purchases of an inventory item during last month were as follows: Number of itemsUnit price 5 $5.00 10 $8.00 8 $6.00 15 $3.00 What was the weighted average price per item? Q2. Simplify 30 + 8 - 6...

Q:

How much will $10,000 be worth after 25 years if it earns a. 6% compounded semiannually. (Do not round your Intermediate calculations, and round your final answer to the nearest cent.) Maturity...

Q:

What is the present value of an annuity due consisting of semiannual payments of $1000 for 25 years, if money can earn: a. 6% compounded semiannually? b. 8% compounded semiannually?

Q:

How much more will an investment of $10,000 be worth after 25 years if it earns 9% compounded annually instead of 8% compounded annually? Calculate the difference in dollars and as a percentage of...

Q:

1. [-/5 Points] DETAILS Compute the simple interest IN for the specified length of time and the future value FV at the end of that time (in dollars). Round all answers to the nearest cent. $13,500 is...

Q:

How much will $10,000 be worth after 25 years if it earns: a. 6% compounded semiannually? b. 7%compoundedsemiannually? c. 8% compounded semiannually?

Q:

Math 1313 Homework 12 Chapter 4 Identify For the following problems do not work them out. Identify the type of problem each one is. 1. The Turners have purchased a house for $150,000. They made an...

Q:

Make It Play is a manufacturer that specializes in three types of toy instruments: xylophones, electronic keyboards, and drum sets. Grandparents across the globe flock to stores so they can buy their...

Q:

Given numbers (46, 40, 71, 44, 48, 34, 75, 13), pivot = 71 = What is the low partition after the partitioning algorithm is completed? (comma between values) Ex: 1,2,3 What is the high partition after...

Q:

Consider a set of functional dependencies F = { A - > BD , AD - > C , B - > C , C - > D , D - > B } on a relation schema R ( A , B , C , D ) . ( a ) ( 1 0 points ) Show the steps of computing a...

Q:

The cost reduction made possible by spreading costs over a larger volume is called a (an) a. cost of goods sold b. variable expense c. contribution margin d. economy of scale

Q:

Consider four mutually exclusive alternatives: The analysis period is 8 years. At the end of 2, 4, and 6 years Alt A will have an identical replacement. Alternative B will have a single identical...

Q:

Consider the three alternatives: Each alternative has a l0-year useful life and no salvage value . Based on a MARR of 15%, which alternative should be selected? Where appropriate, use an external...

Q:

A new 10,000~square-meter warehouse next door to the Tyre Corporation is for sale for $450,000. The terms offered are $100,000 down with the balance being paid in 60 equal monthly payments based on...

Q:

2) Peter is a salesman for Kroner industries which specializes in making of natural gas furnaces. Peter has told you that your current furnace needs to be replaced and he offers the following...

Q:

Sims & Company is brainstorming on if it is a good idea to invest in a short-term installation project. The investment has the following projected cash flows seen below: Required Initial Investment...

Q:

Prepare a Cash Budget for the months of January to March 2019 6 Sales information for November and December of 2018 and Sales forcast for January to March of 2019 are as follows 8 November (2018)...