Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

NEED HELP WITH QUESTION 11,13 and 15. Thanks Chapter 4 Question 15 Input area: Output area: Interest rate Present value 1,680,000 Years 3 $ Future

NEED HELP WITH QUESTION 11,13 and 15. Thanks

image text in transcribed

image text in transcribedimage text in transcribedimage text in transcribed

Chapter 4 Question 15 Input area: Output area: Interest rate Present value 1,680,000 Years 3 $ Future value $ 1,100,000 Chapter 4 Question 13 Input area: Output area: Interest rate Present value $ 150 Years 123 Future value 2,160,000 $ Present value Interest rate Future value Years 30 Chapter 4 Question 11 Output area: Input area: Present value Years 80 Interest rate 8.45% $ Future value 1,000,000 LO2 11. x x LO1 12. LO1, LO3 13. x Calculating Present Values You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 80 years from now. What is the present value of your windfall if the appropriate discount rate is 8.45 percent? Calculating Future Values Your coin collection contains fifty 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2063, assuming they appreciate at an annual rate of 4.8 percent? Calculating Growth Rates and Future Values In 1895, the first U.S. Open Golf Championship was held. The winner's prize money was $150. In 2018, the winner's check was $2,160,000. What was the annual percentage increase in the winner's check over this period? If the winner's prize increases at the same rate, what will it be in 2048? Calculating Rates of Return In 2018, an Action Comics No. 1, featuring the first appearance of Superman, was sold at auction for $573,600. The comic book was originally sold in 1938 for $.10. What was the annual increase in the value of this comic book? Calculating Rates of Return Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2010, Deutscher-Menzies sold Arkie under the Shower, a painting by renowned Australian painter Brett Whiteley, at auction for a price of $1,100,000. Unfortunately for the previous owner, he had purchased it 3 years earlier at a price of $1,680,000. What was his annual rate of return on this painting? LO3 14. LO3 15

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

Students also viewed these Finance questions