Question: 17. Calculating Present Values. Suppose you are still committed to owning a $150,000 Ferrari (see Question 9). If you believe your mutual fund can achieve

17. Calculating Present Values. Suppose you are still committed to owning a $150,000 Ferrari (see Question 9). If you believe your mutual fund can achieve a 10.25 percent annual rate of return, and you want to buy the car in 10 years on the day you turn 30, how much must you invest today?9. Calculating Present Values. Suppose you are still committed to owning a $150,000 Ferrari (see Question 9). If you believe your mutual fund can achieve a 10.25 percent annual rate of return, and you want to buy the car in 10 years on the day you turn 30, how much must you invest today?

PV * (1 + .1025)^10 = $150,000 PV * (1.1025)^10 = $150,000 PV * (2.65239)= $150,000 PV = $150,000/2.65239 PV = $56,533.42

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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

Students Have Also Explored These Related Finance Questions!

How should companies that offer home hubs address consumer concerns about privacy violations? Home hubs that contain voice technologies and microphones, such as Amazons Echo with Alexa and Googles...

4.1 CRITICAL THINKING AND CONCEPTS REVIEW Present Value. The basic present value equation has four parts. What are they? Lo 4.1 4.2 Compounding. What is compounding? What is discounting? LO 4.1 4.3...

W A X C Che e ts of Corporate Solved Calculating Future Value x My Drive Google Drive * 333 week 40- Google Docs creader chegg.com /books/9781260394719/cf/6/441/4/10/16/24/18/290.0 14. Calculating...

Chapter 4: 8, 17, and 18 8: Calculating the Number of Periods. Calculating Rates of Return. In 2011, an 1880-O Morgan silver dollar sold for $13,113. What was the rate of return on this investment?...

LO3 LO 2 LO 1 16. Calculating Rates of Return Refer back to the Series EE savings bonds we discussed at the very beginning of the chapter. a. Assuming you purchased a $50 face value bond, what rate...

I want to see the process. Thanks! CHALLENGE (Question 26) LO126. Calculating Future Values You have $20,000 you want to invest for the next 40 years. You are offered an investment plan that will pay...

-333-21-2010: Week & As X Cho Em Sched Cat Future V 7 6/20 15 K Wes-Gogle Drive Gengle Docs + of Corporate Cereader chegg.com/books/9781260361 S ORODOS Intermediate (Questions 16-25) LO 16....

PLEASE DO NUMBER 17. LO2 17. Calculating Present Values Suppose you are still committed to owning a $175,000 Ferrari (see Q Question 9). If you believe your mutual fund can achieve an annual return...

17. Calculating Present Values Suppose you are still committed to owning a $175,000 Ferrari (see Question 9). If you believe your mutual fund can achieve an annual return of 11.2 percent, and you...

9. Calculating the Number of Periods. Youre trying to save to buy a new $150,000 Ferrari. You have $35,000 today that can be invested at your bank. The bank pays 3.2 percent annual interest on its...

Calculating Rates of Return. Refer back to the Series EE savings bonds we discussed at the very beginning of the chapter. Assuming you purchased a $50 face value bond, what rate of return would you...

Enter the following transactions starting on page 60 of a general journal and post them to the appropriate general ledger and accounts receivable ledger accounts. Use account numbers as shown in the...

Prepare manual entries and complete the general and subsidiary ledgers. 2. Prepare an account receivable and account payable reconciliation of the subsidiary ledger accounts to the control account.

A subscript in an array is always an integer. Group of answer choices True False

please solve question 1 in excel Part I: Discounting, NPV, and IRR. Please list anyone else you worked with and how long you worked with them. For example: "Io Smith, 2 hours" 1. Ten years ago, your...

5. Identify and describe nine social and cultural identities.

2. Define identity.

4. Describe phases of majority identity development.