Question: If an inheritance is compounded annually at 11% and reaches a total of $100,000 after 21 years, what would the starting amount of the investment

If an inheritance is compounded annually at 11% and reaches a total of $100,000 after 21 years, what would the starting amount of the investment be?

Step by Step Solution

★★★★★

3.46 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To find the starting amount of the investment we can use the for... 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

Students Have Also Explored These Related Finance Questions!

Q:

Buffelheads stock price is $220 and could halve or double in each six-month period (equivalent to a standard deviation of 98 percent). A one-year call option on Buffelhead has an exercise price of...

Q:

What is the value three years from now of a bank deposit of $1500 if interest is compounded annually at a rate of 6.75%. 2.) What if the interest rate drops to 2%. 3.) Suppose your grandmother...

Q:

If a nurse deposits $1,000 today in a bank account and the interests is compounded annually at 12 percent, what will be the value of this investment? Five years from now? Ten years from now? Fifteen...

Q:

Americas Got Talent $1M Prize: What Do You Really Get? If you are the Americas Got Talent finalist, you have two options for accepting the prize money of $1,000,000. You can either Option A: Receive...

Q:

Chapter 4 1-Steamer Corporation makes investments of $20,000 this year, $34,000 next year, and $42,500 the following year. This form of payment represents a(n) _____. a. annuity due b. compounded...

Q:

6. Find the present value and compound interest of P 30 000 due at the end of 5 years and 6 months if interest is at 15% compounded quarterly. 7. A certain amount was invested in a fund at a rate of...

Q:

Please help with answering the attached questions. FINAL EXAM 1. Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation that last...

Q:

1. Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation that last several years? a.) Older, working couples saving for retirement....

Q:

1. Inflation can cause difficulty in many ways. Which group would have the greatest problem during periods of high inflation that last several years? a.) Older, working couples saving for retirement....

Q:

JUST ANSWER THE FIRST PAGE: ALL INFO ARE ALREADY GIVEN PRESENT VALUE OF SIMPLE ANNUITY DUE EXAMPLE: Hope borrows money for the renovation of her house and repays by making yearly payments of P50,...

Q:

JUST ANSWER THE FIRST PAGE: ALL INFO ARE ALREADY GIVEN PRESENT VALUE OF SIMPLE ANNUITY DUE EXAMPLE: Hope borrows money for the renovation of her house and repays by making yearly payments of P50,...

Q:

Asean Mine Sdn. Bhd. (AM) is a company involved in discovering minerals and selling minerals to suppliers. It closes accounts on 30 September annually. For the year of assessment 2018, the company's...

Q:

Distinguish between a report qualified as to opinion only and one with both a scope and opinion qualification.

Q:

A company filed a complaint with its IT service provider after the company discovered the service provider's external audit team had access to some of the company's confidential information. Which of...

Q:

Marissa intends to make contributions to a Tax Free Savings Account (TFSA) such that the account will accumulate to $150,000 after 20 years. What end-of-quarter contributions must be made if the TFSA...

Q:

To provide a starting point for gauging a companys relative valuation, analysts often look at a companys price-to-earnings (P/E) ratio. Returning to the COMPANY OVERVIEW page, you can see XOMs...

Q:

On January 1, 2021, Labtech Circuits borrowed $100,000 from First Bank by issuing a three-year, 8% note, payable on December 31, 2023. Labtech wanted to hedge the risk that general interest rates...

Q:

A ships roll can be stabilized with a control system. A voltage applied to the fins actuators creates a roll torque that is applied to the ship. The ship, in response to the roll torque, yields a...

Q:

Corporate Social Responsibility. Methamphetamine (meth) is an addictive drug made chiefly in small toxic labs (STLs) in homes, tents, barns, and hotel rooms. The manufacturing process is dangerous,...

Q:

For the U.S. power grid, transmitting and distributing electricity to consumers has changed a great deal during the last decade.Group of answer choicesTrueFalse

Q:

U.S. GAAP designates cash outflows for interest payments and cash inflows from interest and dividends received as operating cash flows. Dividends paid to shareholders are classified as financing cash...

Q:

Determine the amount of cash received from customers for each of the six independent situations below. All dollars are inmillions. Bad Debt Cash Received from Customers Situation Sales Accounts...

Q:

Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1976. In 2011, the company decided to switch to the average cost method. Data...

Q:

One of the music industrys most pressing questions is: Can paid download stores contend nose-to-nose with free peer-to-peer download services? Data gathered over the last 12months show Apples iTunes...

Q:

The null and alternate hypotheses are: H0: 1 = 2 H1: 1 > 2 A random sample of 20 items from the first population showed a mean of 100 and a standard deviation of 15. A sample of 16 items for the...

Q:

Listed below are the 25 players on the opening-day roster of the 2013 New York Yankees Major League Baseball team, their salaries, and fielding positions. Sort the players into two groups, pitchers...