You have $90,000 saved today and want to purchase a new yacht when your money grows...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You have $90,000 saved today and want to purchase a new yacht when your money grows to $250,000. If you can earn 8 percent on your investments, how long do you have to wait to buy your yacht? You have $90,000 saved today and want to purchase a new yacht when your money grows to $250,000. If you can earn 8 percent on your investments, how long do you have to wait to buy your yacht?
Expert Answer:
Answer rating: 100% (QA)
For the first question We can use the formula for the future value of an investment FV PV x 1 rn whe... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Customer Profile: Mr. & Mrs. Austin Mary and Steve Austin have been married for 5 years and have a 4-year-old daughter named Lindsay. The Austins are starting to think more about their future...
-
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...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Find the nth, or general, term. a. 1, 3, 9,...... b. 25, 5, 1,....... c. 1, -1, 1, -1, .....
-
Why does the discounting of a note receivable with recourse result in a contingent liability? Should the liability be reported on the balance sheet? Explain.
-
The special products can be used to perform selected multiplications. On the left, we use (x + y)(x - y) = x 2 - y 2 . On the right, (x - y) 2 = x 2 - 2xy + y 2 . Use special products to evaluate...
-
What are the three tenets of ethical behavior?
-
Dane Cosmetics is evaluating a new fragrancemixing machine. The machine requires an initial investment of $24,000 and will generate after-tax cash inflows of $5,000 per year for 8 years. For each of...
-
1. The accounting records of Soft Fur Traders include these accounts: Data Table Cash Jan 1 Receipts Jan 31 40,000 Jan 1 440,000 Payments 445,000 Receipts 35,000 Jan 31 Accounts Receivable 1,000...
-
Background: SO MUCH CANDY DATA, SERIOUSLYCandy hierarchy data for 2017 Boing Boing Halloween candy hierarchy. This is survey data over the span of 4-years. The data is split into 4 separate files....
-
On June 1, 20X5, the books of Dremer Corporation show assets with book values and realizable values as follows: Assets Realizable Book Value Value Cash $ 1,850 $ 1,850 Accounts Receivable (net)...
-
Suppose that a stock share is traded on two markets, one with prices denominated in euros and the other one in dollars. Now imagine that we observe the following prices: - The current exchange rate...
-
Kim Corporation is considering an investment of 750 million won with expected aftertax cash inflows of 175 million won per year for seven years. The required rate of return is 10%. What is the...
-
An illuminating joke on the controversy about the EMH goes more or less like this. A well-known professor of the rational school of thought is walking and chatting with a student. The student notices...
-
Wilson Flannery is concerned that this project has multiple IRRs. How many discount rates produce a zero NPV for this project? A. One, a discount rate of 0%. B. Two, discount rates of 0% and 32%. C....
-
Projects 1 and 2 have similar outlays, although the patterns of future cash flows are different. The cash flows as well as the NPV and IRR for the two projects are shown below. For both projects, the...
-
Hideki Homes Limited has several projects for the coming year, all with positive NPV. One of the projects is the purchase of a fleet of backhoes at a cost of $900,000. Hideki's before tax cost of...
-
For the following exercises, write the first four terms of the sequence. a n = 2 n 2
-
Using Financial Reports: Evaluating Financial Information as a Bank Loan Officer Stoscheck Moving Corporation has been in operation since January 1, 2012. It is now December 31, 2012, the end of the...
-
Explain the difference in accounting methods used for passive investments, investments in which the investor can exert significant influence, and investments in which the investor has control over...
-
Preparing a Statement of Cash Flows LAH Manufacturing Corporation is preparing the annual financial statements for the stockholders. A statement of cash flows must be prepared. The following data on...
-
A process has streams to be heated and cooled above its pinch temperatures as illustrated in Figure 11.62. Complete a design that satisfies MER targets with the minimum number of heat exchangers....
-
Consider the network of heat exchangers in Figure 11.60: (a) Determine \(N_{H X, \text { min }}\). (b) Identify the heat loop. (c) Show one way to break the heat loop using \(\Delta T_{\min...
-
To exchange heat between four streams with \(\Delta T_{\text {min }}=20^{\circ} \mathrm{C}\), the HEN in Figure 11.61 is proposed. Determine whether the network has the minimum utility requirements....
Study smarter with the SolutionInn App