Viviana Carroll needs to have $25,000 in five years. If she can earn 7 percent on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Viviana Carroll needs to have $25,000 in five years. If she can earn 7 percent on any investment, what is the amount that she will have to invest every year at the end of each year for the next five years? (Round to the nearest dollar.) Bryant Investments is putting out a new product. The product will pay out $32,450 in the first year, and after that the payouts will grow by an annual rate of 2.75 percent forever. If you can invest the cash flows at 7.25 percent, how much will you be willing to pay for this perpetuity? (Round to the nearest dollar.) Albend Holmes wants to deposit $4,500 in a bank account that pays 5 percent annually. How many years will it take for his investment to grow to $10,000? (Round off to the nearest year.) Viviana Carroll needs to have $25,000 in five years. If she can earn 7 percent on any investment, what is the amount that she will have to invest every year at the end of each year for the next five years? (Round to the nearest dollar.) Bryant Investments is putting out a new product. The product will pay out $32,450 in the first year, and after that the payouts will grow by an annual rate of 2.75 percent forever. If you can invest the cash flows at 7.25 percent, how much will you be willing to pay for this perpetuity? (Round to the nearest dollar.) Albend Holmes wants to deposit $4,500 in a bank account that pays 5 percent annually. How many years will it take for his investment to grow to $10,000? (Round off to the nearest year.)
Expert Answer:
Answer rating: 100% (QA)
a To calculate the annual investment needed to accumulate 25000 in five years we can use the formula ... View the full answer
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0134730363
8th edition
Authors: Arthur J. Keown
Posted Date:
Students also viewed these finance questions
-
1. If you want to buy a $350,000 lathe to improve your shop, and you currently have $200K that you can invest at 8.5% compounded monthly, how long do you have to wait until you can afford the...
-
1. you are offered an annuity of 12,000 a year for 15 years. The annuity payments start after five years have elapsed. If the annuity costs 75,000, is the annuity a good purchase if you can earn 9...
-
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
-
On January 1, Year 2, PAT Ltd. acquired 90% of SAT Inc. when SATs retained earnings were $900,000. There was no acquisition differential. PAT accounts for its investment under the cost method. SAT...
-
Laminar flow in a triangular duct (Figure 3B.2) 2 one type of compact heat exchanger is shown in Figure 3B.2 (a). In order to analyze the performance of such an apparatus, it is necessary to...
-
In the differential amplifier in Figure P14.16, the op-amp is ideal except that the average input bias current is \(I_{B}=10 \mu \mathrm{A}\) and the input offset current is \(I_{O S}=3 \mu...
-
Which of the following is not a reason an internal auditor should participate in internal control reviews during the design of new systems? a. It is more economical to design controls during the...
-
On July 1, Tommy Wrigley established Wrigley Home Appraisal Services, a firm that provides expert residential appraisals and represents clients in home appraisal hearings. INSTRUCTIONS Analyze the...
-
Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.33 million. The fixed asset will be depreciated straight- line to zero...
-
Recall the following details about the two employees hired in November. a. CPP is deducted at 5.10% (considering $3,500 yearly exemption). b. EI is deducted at 1.62% of gross earnings. c. Both...
-
Use the financial information below to construct a 2010 income statement and balance sheets for both 2009 and 2010. The firms average tax rate is 40% and its plowback ratio is 60%. Find the firms...
-
solving for the licensing fees as a percentage of sales revenue 1. return on invested capital is equal to profit/ assets= 2. The Profit made purely because of licenses technology 3. The margin of...
-
The Wall Street Journal that 30-day T-bills are currently yielding 5.1%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate...
-
Envelope Company began operations this month mass-producing pull-and-seal envelopes. During the month of July, it completed 25,000 units and has 20,000 units that are 65% complete. It had product...
-
Draiman Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, and a current price of $987. The bonds make semiannual payments. What must the...
-
Suppose Flavor Fusion, a food company, produces beverages. Their total fixed cost is $ 1 5 , 0 0 0 , and the total variable cost is $ 5 0 0 0 . Let us calculate the total cost for the company.
-
1. The focal length of a diverging lens is negative. If f = 16 cm for a particular diverging lens, where will the image be formed of an object located 45 cm to the left of the lens on the optical...
-
Huntingdon Capital Corp. is a competitor of Plazacorp and First Capital Realty. Huntingdon reported the following selected information (in millions):...
-
For three of the questions in Table 1.3, write a concise and descriptive response. Practice your answers, and then present them to someone willing to give you suggestions for improving your responses...
-
Jana just found out that she is going to receive an end-of-year bonus of $40,000. She is in the 25 percent marginal tax bracket. Calculate her income tax on this bonus. Now assume that instead of...
-
Sedki earned $129,750 in 2017. How much did he pay in Social Security taxes? In Medicare taxes? In total FICA taxes? (Hint: Dont forget the annual Social Security earnings cap.)
-
Jenny Company begins the year with \($110,000\) of inventory and purchased an additional \($245.000\) of inventory during the year. At year end, a physical count of inventory revealed that Jenny...
-
Following are items reported on the financial statements of Microsoft Corporation as of June 30, 2017. of the reported accounts have been combined for simplicity.) Amounts given are in millions of...
-
On June 1, Musicland Inc. purchases 125 CDs at \($4.08\) each on account from its distributor for a total of \($510\). The credit terms of the purchase were 2/10, n/30. Also on June 1, Musicland paid...
Study smarter with the SolutionInn App