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4 PARTS TOTAL, THANK YOU! Yosemite Sam wants to invest $50,000 over a seven-year period. Yosemite Sam intends to invest the entire sum today and
4 PARTS TOTAL, THANK YOU!
Yosemite Sam wants to invest $50,000 over a seven-year period. Yosemite Sam intends to invest the entire sum today and then withdraw the equivalent amount seven years from now. The interest rate ACME bank is offering is 4.50% every three months. How much will Sam be able to withdraw seven years from now? Draw a cash flow diagram on a piece of paper, from Yosemite Sam's perspective, and enter in the table below all the values you identify in your CFD. Note: you do not have to solve this problem yet, just identify the variables (you may have to calculate an interest rate in some problems). Instructions: Enter in the table below the values for each variable, from Yosemite Sam's perspective as follows: 12345 (for receipts) or -12345 (for disbursements) and 12.34 for interest rates. For the unknown variable enter a question mark "?" symbol, and if the variable is not included in the problem, enter "dna". Variable Value P -50000 F ? i period 1.5 3 nperiod ia 4.50 7 n G Yosemite Sam wants to invest $50,000 over a seven-year period. Sam intends to invest the entire sum today and then withdraw the equivalent amount seven years from now. The interest rate ACME bank is offering is 4.50% every three months. How much will Sam be able to withdraw seven years from now? Note: you do not have to solve this problem, just select the problem set up (you may have to calculate an interest rate in some problems). Instructions: Consult the cash flow diagram your drew before and select, from Yosemite Sam's perspective, the problem set up that best describes this problem. P=-$50,000(P/A, 19.25%, 7) F=-$50,000(F/P, 18%, 7) A=-$50,000(A/P, 18%, 7) 0 0 0 0 0 0 P=$50,000(P/F, 4.50%, 28) F=$50,000(F/P, 19.25%, 28) P=-$50,000(P/F, 4.50%, 7) Yosemite Sam wants to invest $50,000 over a seven-year period. Sam intends to invest the entire sum today and then withdraw the equivalent amount seven years from now. The interest rate ACME bank is offering is 4.50% every three months. How much will Sam be able to withdraw seven years from now? Instructions: Consult the cash flow diagram and problem setup and calculate your answer. Important: Enter your answer in the following format 1234.00; exclude commas, $ signs, and + or - symbols. What if Yosemite Sam wants for his investment to return approximately $290,818.23 given that: Yosemite Sam still wants to invest $50,000 today. The interest rate ACME bank is offering is 4.50% every three months How many extra quarters should Yosemite invest for him to approximate this desired return? Instructions: enter the answer in the space belowStep by Step Solution
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