John Fillmores lifelong dream is to own his own fishing boat to use in his retirement. John
Question:
John Fillmore’s lifelong dream is to own his own fishing boat to use in his retirement. John has recently come into an inheritance of $400,000. He estimates that the boat he wants will cost $300,000 when he retires in 5 years. How much of his inheritance must he invest at an annual rate of 12% (compounded annually) to buy the boat at retirement?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
12 annual interest PV 300000 PV...View the full answer
Answered By
Antony Sang
I am a research and academic writer whose work is outstanding. I always have my customer's interests at heart. Time is an important factor in our day to day life so I am always time conscious. Plagiarism has never been my thing whatsoever. I give best Research Papers, Computer science and IT papers, Lab reports, Law, programming, Term papers, English and literature, History, Math, Accounting, Business Studies, Finance, Economics, Business Management, Chemistry, Biology, Physics, Anthropology, Sociology, Psychology, Nutrition, Creative Writing, Health Care, Nursing, and Articles.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
Jack Thompsons lifelong dream is to own his own fishing boat to use in his retirement. Jack has recently come into an inheritance of $400,000. He estimates that the boat he wants will cost $350,000...
-
Jose Garcia's lifelong dream is to own a fishing boat to use in his retirement. Jose has recently come into an inheritance of $400,000. He estimates that the boat he wants will cost $300,000 when he...
-
Ryan Huston's lifelong dream is to own a restaurant. He owns a premium site for a restaurant across the street from the local university. Now he needs to decide what kind of restaurant to open....
-
Let z(k) denote the k-year continuously compounded zero-coupon yield for the current term structure. You are given that z(1) = 0.035, z(2) = 0.041, z(3) = 0.045, z(4) = 0.049, z(5) = 0.051, z(6) =...
-
Tech Support Services has the following unadjusted trial balance as of January 31, 2018: The debit and credit totals are not equal as a result of the following errors: A. The cash entered on the...
-
Fadette borrows $50,000 today and agrees to make the following payments: $15,000 in two years, $30,000 in 5 years and $20,000 in 6 years. a) [5 points] Represent the schedule of the monetary flows...
-
A model for chromatographic separation: a case-study problem. An important application of Taylor dispersion is in chromatography. Here pulses of a mixture of solutes are introduced into one end of a...
-
Academy Products manufactures a variety of custom components for use in aircraft navigation and communications systems. The controller has asked for your help in estimating fixed and variable...
-
Individual Key Learning Report Individual Key Learning Report A+ Individual Report on Key Learnings Students are required to prepare an individual report at the end of the semester to present the...
-
Aqua-Marine manufactures fiberglass fishing boats. The manufacturing costs incurred during its first year of operations are shown as follows: Direct materials purchased . . . . . . . . . . . . . . ....
-
Steve Madison needs $250,000 in 10 years. How much must he invest at the end of each year, at 11% interest, to meet his needs?
-
Morgan Freeman is investing $16,380 at the end of each year in a fund that earns 10% interest. In how many years will the fund be at $100,000?
-
Is it revenue or a reduction of an expense? That is the question companies that receive manufacturers rebates for purchasing a large quantity of product must answer. Food companies like Sara Lee,...
-
The economy is absorbing excess capacity more rapidly than we projected in April, and it now appears that the output gap will close around the end of this year. . . . Meanwhile, inflation has...
-
On the graph, show the long-run effects of the pollution crackdown. California plans to crack down on the use of fumigants by growers of strawberries. The biggest burden will fall on Ventura Countys...
-
Chromium(VI) forms two different oxyanions, the orange dichromate ion (Cr 2 O 7 2 )and the yellow chromate ion (CrO 4 2 ) Extra \left or missing ight . The equilibrium reaction between the two ions...
-
Three diatomic molecules from different gas samplesone at \(3 \mathrm{~K}\), one at \(298 \mathrm{~K}\), and one at \(1000 \mathrm{~K}\)-are in thermal equilibrium with their respective surroundings....
-
Suppose a glass rod is rubbed on wool. When held \(35.0 \mathrm{~mm}\) above a \(0.20 \mathrm{~g}\) scrap of paper, the rod lifts the paper with an initial acceleration of \(0.14 \mathrm{~m} /...
-
Explain the meaning of the terms 'risk', 'operating capability' and 'financial flexibility'.
-
Solve each equation. x 3 - 6x 2 = -8x
-
An investigative approach that includes testimonial evidence, documentary evidence, physical evidence, and personal observations is referred to as the: a. Investigative square of evidence. b....
-
Glaus Leasing Company agrees to lease machinery to Jensen Corporation on January 1, 2010. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal...
-
Cleveland Inc. leased a new crane to Abriendo Construction under a 5-year non-cancelable contract starting January 1, 2011. Terms of the lease require payments of $33,000 each January 1, starting...
-
Winston Industries and Ewing Inc. enter into an agreement that requires Ewing Inc. to build three diesel-electric engines to Winstons specifications. Upon completion of the engines, Winston has...
-
You will modify the add method in the LinkedBag class. The add method is the only thing you should modify in LinkedBag. Add a second parameter to the method header that will be a boolean variable:...
-
Generate Random Decals is primitive please fix that as well As a license plate number, integers are to be used. Positive numbers add a car, negative numbers remove a car, zero stops the...
-
Describe the competitive positions in the drone industry and assess the opportunities for at least three positions in the industry.
Study smarter with the SolutionInn App