Compute the future value of $4,375 compounded annually for: a. 10 years at 6 percent. b. 10
Question:
Compute the future value of $4,375 compounded annually for:
a. 10 years at 6 percent.
b. 10 years at 8 percent.
c. 20 years at 6 percent.
d. Why is the interest earned in part (c) not twice the amount earned in part (a)?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 92% (13 reviews)
a To find the FV of a lump sum we use FV PV1 r t The time line for the cash flo...View the full answer
Answered By
John Kago
Am a processional practicing accountant with 5 years experience in practice, I also happens to have hands on experience in economic analysis and statistical research for 3 years. am well conversant with Accounting packages, sage, pastel, quick books, hansa world, etc, I have real work experience with Strata, and SPSS
4.70+
31+ Reviews
77+ Question Solved
Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Question Posted:
Students also viewed these Business questions
-
Consider a situation where two firms with differentiated products behave as a duopoly in a market. The inverse demand functions for firms 1 and 2 are as follows: p 1 = 200 - q 1 - 0.5q 2 p 2 = 200 -...
-
Compute the future value of $2,500 compounded annually for a. 10 years at 6 percent b. 10 years at 8 percent c. 20 years at 6 percent d. Why is the interest earned in part (c) not twice the amount...
-
Compute the future value of $3,550 compounded annually for: a. 10 years at 6 percent. b. 10 years at 8 percent. c. 20 years at 6 percent. d. Why is the interest earned in part (c) not twice the...
-
Design a linear-time algorithm to sort an array of Comparable objects that is known to have at most three distinct values. (Edsger Dijkstra named this the Dutch-national-flag problem because the...
-
Perfluorooctanoic acid (PFOA) is a chemical used in Teflon-coated cookware to prevent food from sticking. The EPA is investigating the potential risk of PFOA as a cancer-causing agent (Science News...
-
Lehighton Chalk Company had no beginning or ending work-in-process inventories for either year. 1. Prepare operating income statements for both years based on absorption costing. 2. Prepare operating...
-
The following arrangement indicates whether 60 consecutive cars which went by the toll booth of a bridge had local plates, \(L\), or out-of-state plates, \(O\) : Test at the 0.05 level of...
-
River Spray Company was organized to grow cranberries. They entered into an agreement with a landowner to lease 125 acres to develop a cranberry bog. The agreement states that River Spray will be...
-
The total sales of a company (in millions of dollars) t months from now are given by S(t) = 0.04t + 0.2t + 6t + 9. (A) Find S'(t). (B) Find S(2) and S'(2) (to two decimal places). (C) Interpret S(8)...
-
NPV and Discount Rates An investment has an installed cost of $724,860. The cash flows over the four-year life of the investment are projected to be $324,186, $375,085, $354,302, and $205,680. If the...
-
First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City Bank pays 7 percent interest compounded annually. If you made a $5,600 deposit in each bank, how...
-
For each of the following, compute the present value: Present Value Years Interest Rate Future Value 9 7% $ 10,971 13 9 43,862 16 14 754,500 11 480,127 24
-
Montana Max sells a 2,500-acre ranch for $1,000,000 in cash, a note receivable of $1,000,000, and debt relief of $2,400,000. He also pays selling commissions of $60,000. In addition, Max agrees to...
-
LOral markets 34 brands of cosmetics, fragrances, and hair care products in 130 countries. The companys international strategy involves manufacturing these products in 42 plants located around the...
-
What is the proper way to make changes to a written health record?
-
A calibration laboratory has received a weight that is labeled as \(1 \mathrm{~kg}\). It is weighed five times. The measurements are as follows, in units of micrograms above \(1 \mathrm{~kg}\) :...
-
Given a finite list of prime numbers \(p_{1}, \ldots, p_{N}\), let \(M=\) \(p_{1} \cdot p_{2} \cdots p_{N}+1\). Show that \(M\) is not divisible by any of the primes \(p_{1}, \ldots, p_{N}\). Use...
-
Soweto Ltd is unsure of how to obtain computer software. Four possibilities are: (1) Purchase computer software externally, including packages for payroll and general ledger. (2) Contract independent...
-
Ms. Jacki Jerome, a famous rock superstar, dies on November 28, 2015, and leaves her entire estate, with a fair value of $23,400,000 (after settling all estate expenses and liabilities) to her cousin...
-
Complete problem P10-21 using ASPE. Data from P10-21 Original cost ................................................................. $7,000,000 Accumulated depreciation...
-
SML cost of equity estimation what are the advantages of using the SML approach to finding the cost of equity capital? What are the disadvantages? What specific pieces of information are needed to...
-
Cost of Debt estimation how do you determine the appropriate cost of debt for a company? Does it make a difference if the companys debt is privately placed as opposed to being publicly traded? How...
-
Cost of Debt estimation how do you determine the appropriate cost of debt for a company? Does it make a difference if the companys debt is privately placed as opposed to being publicly traded? How...
-
On a particular day, there were 300 stocks that advanced on the NYSE and 800 that declined. The volume in advancing issues was 1000 and the volume in declining issues was 3000. What is the trin ratio?
-
A coupon bond that pays interest of $30 annually has a par value of $1000, matures in 6 years, and is selling today at $850. What is the yield to maturity on this bond?
-
A callable bond pays annual interest of $40, has a par value of $1000, matures in 4 years but is callable in 3 years at a price of $1100, and has a value today of $1020. What is the yield to call on...
Study smarter with the SolutionInn App