Question: You need $ 2 0 0 , 0 0 0 in 2 0 years from now. The interest rate will be 8 % . How

You need $200,000 in 20 years from now. The interest rate will be 8%. How much would you have to invest today with interest rates remaining constant?

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!

Q:

If you could please help me figure out the answers, and leave the work for the solutions. Thank you. (I also uploaded the tables that could be helpful). Exercise B-18 (Algo) Practical applications of...

Q:

Please complete the questions below with detailed explanation Business Finance Professor Saeid Hoseinzade Homework #2 1. Complete the following table. Number of Payments or Years Annual Interest Rate...

Q:

Homework: 16.1 HW Question 3, 16.1.13 HW Score: 0%, 0 of 6 points E Save Part 1 of 3 O Points: 0 of 1 Stephen has just purchased a home for $137,000. A mortgage company has approved his loan...

Q:

Need help figuring out problem #40, #42, and #45 in the attached document. I have the answers for the problems, but need to see how they are worked out. FIN 142 - Real Estate Finance Problem Set 2 1....

Q:

MATH 21 PRACTICE TEST Chapters 5 & 8 Instructor Bronie Name 1. Jones borrows $500 for 3 years at 6% simple interest (annual rate). How much interest will be paid? Answer 2. Matt paid $1 15.50...

Q:

Frank?s Dogs has beginning net fixed assets of $480 and ending net fixed assets of $530. Assets valued at $300 were sold during the year. Depreciation was $40. What is the amount of capital spending?...

Q:

1. (Compound annuity) What is the accumulated sum of each of the following streams of payments? a. $480 a year for 10 years compounded annually at 9 percent. b. $108 a year for 7 years compounded...

Q:

I have 14 questions for finance homework that i need help with! Effective interest rate You borrow $155,000; the annual loan payments are $8,963.67 for 30 years. What interest rate are you being...

Q:

3 - Apply: Wk 3 Quiz [due Mon] i Saved Help Save & Ex a. What is the present value of a 3-year annuity of $150 if the discount rate is 7%? (Do not round intermediate calculations. Round your answer...

Q:

Provided are links to the present and future value tables: (PV of \$1, FV of \$1, PVA of \$1, and FVA of \$1) (Use oppropriate factor(s) from the tobles provided.) 0. How much would you have to...

Q:

A McDonald's franchise is an example of a. Quasi vertical integration. b. A vertical merger. c. Horizontal integration. d. None of the above.

Q:

What are managements objectives related to payroll?

Q:

The GASB Codification identifies four classifications of nonexchange transactions.A grant that a school district receives from a private foundation is in which classification? voluntary nonexchange...

Q:

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

Q:

To whom might an entrepreneur present his or her business plan? Why? (Objective 4)

Q:

Assume you want to start a business in the community in which your school is located. What resources are available to youlocally or through the Internetas you approach the task of drafting a business...

Q:

A student organization to which you belong recently returned from its national conference. One of the highlights of the conference was announcement of Chapter of the Yearand your group won! Prepare...