Homework Answers
Amount invested $ 1,469.33
| Step-1:Calculation of future value of investment now | ||||||||
| Future value | = | P | * | (1+i)^n | Where, | |||
| = | $ 1,000 | * | (1+0.08)^30 | P | = | $ 1,000 | ||
| = | $ 1,000 | * | 10.06266 | i | = | 8% | ||
| = | $ 10,062.66 | n | = | 30 | ||||
| Step-2:Calculation of investment value 5 years from now for same future value as above | ||||||||
| Investment value 5 years from now | = | F | * | (1+i)^-n | Where, | |||
| = | $ 10,062.66 | * | (1+0.08)^-25 | F | = | $ 10,063 | ||
| = | $ 10,062.66 | * | 0.146018 | i | = | 8% | ||
| = | $ 1,469.33 | n | = | 25 | ||||
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Click and enlarge to view please options for req 3 are (Earlier savings or later saving...
Click and enlarge to view
please
options for req 3 are (Earlier savings or
later saving ) and (Later or
sooner)
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the answers. Thanks so much I will make sure to leave you
a thumbs up and this is my last question I can post this month.
This is due at 3 so please help me. I would really appreciate it
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2. As you may know a college education is expensive. Some parents start saving early for their child's education. Consider this scenario. Your child will need $22,000 when they are 18, $25,000 at age 19, $28,000 at 20, and $31,000 at 21. Assume you can invest at 6% compounded annually. You have two options: a) Deposit a lump sum at year 1 and let it grow until enough accrues to cover the education expense. How much would need to be...
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Click and enlarge to view
please
options for req 3 are (Earlier savings or
later saving ) and (Later or
sooner)
Data Table -X X ba 16% Period 1 Future Value of Annuity of $1 10% 12% 14% 1.000 1.000 1.000 6.105 6.353 6.610 5 1.000 6.877 21.321 30.850 10 15.937 17.549 19.337 12 21.384 27.271 15 24.133 37.280 72.052 43.842 31.772 57.275 51.660 20 91.025 115.38 25 98.347 133.334 181.871 249.214 30 164.494 271.024 442.593 241.333 431.663 530.312 1120.713...
Please label and bold
the answers. Thanks so much I will make sure to leave you
a thumbs up and this is my last question I can post this month.
This is due at 3 so please help me. I would really appreciate it
thanks so much!!!!!!!!
Problem 6.01 Sheridan, Inc., management expects the company to earn cash flows of $12,300, $16,400, $17,900, and $19,200 over the next four years. If the company uses an 7 percent discount rate, what...
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