p80 Week 4 A x C Chegg Essentials of Corporate ereader.chegg.com/a/books/9781260394719/cv6/44/4/10/16/20/2/200 29 5 C Solved Caleulating Future Value X My Drive-Google Drive 5. Carcuant ute wober or PerIous ted33 wek 40-Google Docs SOveor tie umxitow number or yeaars m ea o oo Present Value Years Interest Rate $ 195 Future Value 8% 2,105 $ 873 11 47,800 3.500 10 326500 38,650 15 213380 6. Calculating Rates of Return Assume the total cost of a college education will be $235.000 when your child enters college in 18 years. You presently have $53.000 to invest. what anaual rate of interest must you earn on your investment to cover the cost of your child's eollege education? 7. Calculating the Number of Periods At 5-3 percent interest, how long does it take to double your money? To quadruple it? 8. Calculating Rates of Return In 2018, one of the first copper pennies struck at the Philadelphia mint in 1793 was sold for $300,000. What was the rate of return on this ivestment 9. Calculating the Number of Periods You're trying to save to buy a new $175.000 Ferrari. You have $35.000 today that can be invested at your bank. The bank pays 2.9 peroent anntal interest on its accounts. How long will it be before you have enough to buy the car? Imprudential, Inc, has an unfunded pension lability of $645 million that mast be paid in 25 years. To assess the value of the firm's stock, financial analysts want the present. If the relevant discount rate is 5.5 percent, what is the present value of this liability? You have just received notification that you have won the $1 million first prize in the Centennial Lottery. Howrver, the prine will be awarded on your sooe 1 Groovy Green nd to collect), 80 years from now. What is the present value of your windfall if the appropriate discount rate is 8.45 perent? tour coin collection contains fifty 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how mach will your colection 63. assuming they appreciate at an annual rate of 4.8 percent? s and Future Values In 1895, the first U.S. Open Golf Championship was held. The winner's prize money was $15o. In 2018, the winner's check was ual percentage increase in the winner's check over this period? If the winner's prine increases at the same rate, what will it be in 204 In 2018, an Action Comics No. 1, featuring the first appearance of Superman, was sold at anction for $57600. The comic book was oripinally sold in for 11 Add Note 1 1LO Copy Read Aloud from here 3 1 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 parchased i3 years earlier at a pricr of $1,680,000. What was his annual rate of return on this painting? S.10. What was the annual increase in the value of this comic book? more refined tastes, art as a collectible has not always performed so profitably. During 20so, Deutscher-Menies sold Arkir ander the Although appealing to 3 15. Calculating Rates of Return Aa 40 termediate (Ouestions 16 251 DELL p80 Week 4 A x C Chegg Essentials of Corporate ereader.chegg.com/a/books/9781260394719/cv6/44/4/10/16/20/2/200 29 5 C Solved Caleulating Future Value X My Drive-Google Drive 5. Carcuant ute wober or PerIous ted33 wek 40-Google Docs SOveor tie umxitow number or yeaars m ea o oo Present Value Years Interest Rate $ 195 Future Value 8% 2,105 $ 873 11 47,800 3.500 10 326500 38,650 15 213380 6. Calculating Rates of Return Assume the total cost of a college education will be $235.000 when your child enters college in 18 years. You presently have $53.000 to invest. what anaual rate of interest must you earn on your investment to cover the cost of your child's eollege education? 7. Calculating the Number of Periods At 5-3 percent interest, how long does it take to double your money? To quadruple it? 8. Calculating Rates of Return In 2018, one of the first copper pennies struck at the Philadelphia mint in 1793 was sold for $300,000. What was the rate of return on this ivestment 9. Calculating the Number of Periods You're trying to save to buy a new $175.000 Ferrari. You have $35.000 today that can be invested at your bank. The bank pays 2.9 peroent anntal interest on its accounts. How long will it be before you have enough to buy the car? Imprudential, Inc, has an unfunded pension lability of $645 million that mast be paid in 25 years. To assess the value of the firm's stock, financial analysts want the present. If the relevant discount rate is 5.5 percent, what is the present value of this liability? You have just received notification that you have won the $1 million first prize in the Centennial Lottery. Howrver, the prine will be awarded on your sooe 1 Groovy Green nd to collect), 80 years from now. What is the present value of your windfall if the appropriate discount rate is 8.45 perent? tour coin collection contains fifty 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how mach will your colection 63. assuming they appreciate at an annual rate of 4.8 percent? s and Future Values In 1895, the first U.S. Open Golf Championship was held. The winner's prize money was $15o. In 2018, the winner's check was ual percentage increase in the winner's check over this period? If the winner's prine increases at the same rate, what will it be in 204 In 2018, an Action Comics No. 1, featuring the first appearance of Superman, was sold at anction for $57600. The comic book was oripinally sold in for 11 Add Note 1 1LO Copy Read Aloud from here 3 1 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 parchased i3 years earlier at a pricr of $1,680,000. What was his annual rate of return on this painting? S.10. What was the annual increase in the value of this comic book? more refined tastes, art as a collectible has not always performed so profitably. During 20so, Deutscher-Menies sold Arkir ander the Although appealing to 3 15. Calculating Rates of Return Aa 40 termediate (Ouestions 16 251 DELL