reader chego combo 97812 7 10/ 1016/2012/2 L04 5. Calculating the Number of Periods Solve for the unknown number of years in each of the following: 0 0 Present Value Interest Rate Future Value $ 873 2.105 3.500 47.800 325.500 38 650 213120 03 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 $2000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? 04 7. Calculating the Number of Periods At 53 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 1993 was sold for $300,000. What was the rate of return on this investment? 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 percent annual interest on its accounts. How long will it be before you have enough to buy the car? 02 11 Groovy Green Imprudential, Inc., has an unfunded pension liability of $645 million that must 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 55 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. However, the prize will be awarded on your looth nd to collect), 80 years from now. What is the present value of your windfall if the appropriate discount rate is 8.45 percent? four 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 63. assuming they appreciate at an annual rate of 4.8 percent? 1 Log Copy is and Future Values In 1895, the first US Open Golf Championship was held. The winner's prize money was $1. In 2018, the winner's check was Read Aloud from here wal 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 2018? In 2018, an Action Comics No. 1, featuring the first appearance of Superman, was sold at auction for $57,600. The comic book was originally sold in 1938 for $.10. What was the annual increase in the value of this comic book? 3 15. 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 Arkle 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? Aa 10 9 04:01
