Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

he U.S. stock market has returned an average of about 8% per year since 1900. This return works out to a real return (i.e.,

image text in transcribed

he U.S. stock market has returned an average of about 8% per year since 1900. This return works out to a real return (i.e., adjusted for inflation) of approximately 5% per year. If you invest $102,000 and you earn 5% a year on it, how much real purchasing power will you have in 30 years? . If you invest $6,000 per year for 17 years, how much real purchasing power will you have at the end of 30 years? The interest rate is 5% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 5% per year. The real purchasing power amount in 30 years is $ (Round to the nearest dollar.) More Info Amount Factor Worth Factor To Find F To Find P Given P Given F Given A Discrete Compounding; = 5% Single Payment Compound Present Compound Amount Factor To Find F Uniform Series Present Worth Factor To Find P Sinking Fund Factor To Find A Capital Recovery Factor To Find A Given P Given A Given F N F/P P/F F/A P/A A/F A/P 1 1.0500 0.9524 1.0000 0.9524 1.0000 1.0500 2 1.1025 0.9070 2.0500 1.8594 0.4878 0.5378 3 1.1576 0.8638 3.1525 2.7232 0.3172 0.3672 4 1.2155 0.8227 4.3101 3.5460 0.2320 0.2820 5 1.2763 0.7835 5.5256 4.3295 0.1810 0.2310 6 1.3401 0.7462 6.8019 5.0757 0.1470 0.1970 7 1.4071 0.7107 8.1420 5.7864 0.1228 0.1728 8 1.4775 0.6768 9.5491 6.4632 0.1047 0.1547 9 1.5513 0.6446 11.0266 7.1078 0.0907 0.1407 10 1.6289 0.6139 12.5779 7.7217 0.0795 0.1295 11 1.7103 0.5847 14.2068 8.3064 0.0704 0.1204 12 1.7959 0.5568 15.9171 8.8633 0.0628 0.1128 13 1.8856 0.5303 17.7130 9.3936 0.0565 0.1065 14 1.9799 0.5051 19.5986 9.8986 0.0510 0.1010 15 2.0789 0.4810 21.5786 10.3797 0.0463 0.0963

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

Forensic Accounting and Fraud Examination

Authors: William Hopwood, george young, Jay Leiner

2nd edition

978-007813666, 78136660, 978-0078136665

More Books

Students also viewed these Accounting questions

Question

1. Show enthusiasm for the subject you teach.

Answered: 1 week ago