Ben Watson found $25,000 lying on the sidewalk and decided to invest the money. He believes that
Question:
Ben Watson found $25,000 lying on the sidewalk and decided to invest the money. He believes that he can earn a 10 percent rate (compounded annually) on his investment for the first four years, 12 percent for the following three years, and 15 percent for the following five years.
a. How much money will Ben have at the end of four years, seven years, and twelve years?
b. If someone offered to pay him $36,000 at the end of four years for the $25,000 should he accept? Why or why not?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
a Dollar amount 25000 x Future value factor for i 10 and n 4 2500...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
How much money would you have at the end of 10 years if you made deposits of $4,000 at the end of every three months into an investment that accumulated at 9 compounded quarterly
-
How much more will you have in your RRSP 30 years from now if you start to contribute $1000 per year at the end of this year, instead of waiting five years to begin contributing $1000 at each...
-
How much more will you have in your RRSP 30 years from now if you make fixed contributions of $3000 at the end of each of the next 30 years, instead of waiting 15 years and making annual...
-
Read each case carefully and, as determined in the Internal Revenue Code of Puerto Rico, identify the deductions, calculate the amount of deductions and what the determined contribution would be. and...
-
Bracey Company manufactures and sells one product. The following information pertains to the company's first year of operations: Variable cost per unit: Direct materials...
-
An article in Management Accounting concluded that there will always be some budgetary padding in any organization. (a) As management accountant, write a report to your finance director, explaining...
-
The Robinson Company sells sports decals that can be personalized with a players name, a team name, and a jersey number for \($5\) each. Robinson buys the decals from a supplier for \($1.50\) each...
-
Coastal Safety manufactures flotation vests in Miami, Florida. Coastal Safety's contribution margin income statement for the most recent month contains the following data: Suppose Dazzle Cruiselines...
-
In isosceles trapezoid QUAD, AD = (3x) feet, AU = (x-9) feet, UQ = (4x + 72) feet and QD = (8x) feet. a) **Solve for x D b) *What property did you use to solve for x? c) Determine the length of DA...
-
A financial institution has the following market value balance sheet structure: a. The bond has a 10-year maturity, a fixed-rate coupon of 10 percent paid at the end of each year, and a par value of...
-
Compute the present value of the payment patterns provided below, given an 8 percent discount rate. a. $50 at the end of Year 2; $100 at the end of Year 5; $80 at the beginning end of Year 8. b. $100...
-
Rudnicki Corporation raises money by issuing bonds. The bond agreement states that Rudnicki must make interest payments in the amount of $40,000 at the end of each year for ten years and make a...
-
Describe your recent experiences with either group coupons (e.g., Groupon, Living Social) or mobile phone coupons. (Consult a friend if needed.) Have these technological changes helped spark your...
-
An auditor performing a single audit would issue all the following reports except a. Opinion on the financial statements. b. Report on management objectives. c. Report on internal controls over...
-
Wolf is auditing an entity's compliance with requirements governing a major federal financial assistance program in accordance with Government Auditing Standards. Wolf detected noncompliance with...
-
What is the purpose of a compliance audit?
-
a. What is an audit committee, what is its ideal composition, and why has there been a marked increase in their use? b. What are the functions of audit committees?
-
Differentiate between financial and operational auditing.
-
Explain the difference between incremental budgeting and zerobased budgeting.
-
Write a paper by answer the following question: Should Recycling Be Mandatory?
-
In standard actuarial notation, the quantity t p 50 denotes the probability that, on his 50th birthday, an individual will survive for a further t years. Under the Weibull model of mortality, t p 50...
-
The following balance sheet and income statement data were taken from the records of L. L. Beeno for the year ended December 31, 2015: Prepare the operating section of the statement of cash flows,...
-
The following information was taken from the IFRS-based 2012 financial statements published by Carrefour, a French retailer (in million euros): Income before tax ..............552 Tax...
-
The following events occurred during 2015 for Frames Unlimited: 1. Purchased inventory for $60,000 in cash. 2. Recorded $40,000 in insurance expense for the portion of an insurance policy acquired in...
-
An advantage of using a cold site as a recovery option is less expensive recovery option. Question 9 options: True False
-
Mortgage interest credit can be claimed if the taxpayer Question 108Select one: a. Receives a monthly mortgage statement b. Rehabilitates a home c. Is issued a mortgage credit certificate (MCC) under...
-
Goods which are not interchangeable Choose your answer here be assigned costs using the specific identification method
Study smarter with the SolutionInn App