Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7. Present Value Questions. Use the present and future value tables in Appendix C to answer the following questions. a. How much will $15,000 invested

7. Present Value Questions. Use the present and future value tables in Appendix C to answer the following questions. a. How much will $15,000 invested at 4% be worth in 4 years? b. If you invest $10,000 per year and earn an average of 14% interest, how much will you have in 20 years? c. How much should you invest today to have a total of $100,000 in ten years if you can earn 12% interest? d. Assume you are 22 years old and you want to retire in 40 years with $5,000,000. How much should you save each year to accumulate that amount assuming an interest rate of 12%? e. Assume you have been given $200,000 by your wealthy uncle. If you invest it at 10% for 20 years, how much will the investment be worth? f. Which would you rather have assuming you can earn 8% interest? Show computations. a. $30,000 in 2 years? b. $50,000 in 5 years? c. $79,000 in 9 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Trainer 3 0 Online For Albright/Ingram/Hills Managerial Accounting Information For Decisions

Authors: Thomas L. Albright, Robert W. Ingram, John S. Hill

4th Edition

0324233388, 978-0324233384

More Books

Students also viewed these Accounting questions

Question

What are the features of Management?

Answered: 1 week ago

Question

Briefly explain the advantages of 'Management by Objectives'

Answered: 1 week ago

Question

Explain the various methods of job evaluation

Answered: 1 week ago

Question

What is the role of the Joint Commission in health care?

Answered: 1 week ago