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THERE IS A TOTAL OF 3 PARTS. thank you! Wile E. Coyote wants to have $5,000,000 at the end of ten years to be able
THERE IS A TOTAL OF 3 PARTS. thank you!
Wile E. Coyote wants to have $5,000,000 at the end of ten years to be able to afford the new ACME Rocket. Mr. Coyote intends to invest today $50,000 and then deposit a yearly amount that will increase with the inflation (assume 3% inflation). The interest rate ACME bank is offering is 5.25% per year compounded yearly. What is the yearly amount that Mr. Coyote needs to deposit to have $5,000,000 at the end of 10 years? Note: you do not have to solve this problem, just identify the variables (you may have to calculate an interest rate in some problems). Instructions: Consult the cash flow diagram your drew before and select, from Mr. Coyote's perspective, the problem set up that best describes this problem: F=-$50,000(F/A, 3%, 5.25%, 10) F=$50,000(P/F, 5.25%, 10) + A (P/A, 5.25%, 10)(F/P,5.25%,10)+$5,000,000 A= $50,000 (A/P, 3%, 10) + $5,000,000 (A/F, 5.25%, 10) A = ($5,000,000 - $50,000(F/P, 5.25%, 10)] / [(P/A, 3%, 5.25%, 10) (F/P, 5.25%, 10)] P=-$50,000(P/A, 3%, 5.25%, 10) Draw a cash flow diagram on a piece of paper, from Mr. Coyote's perspective, and enter in the table below all the values you identify in your CFD. Note: you do not have to solve this problem, just identify the variables (you may have to calculate an interest rate in some problems). Instructions: Enter in the table below the values for each variable, from Mr. Coyote's perspective as follows: 12345 (for receipts) or -12345 (for disbursements) and 12.34 for interest rates. For the unknown variable enter a question mark "?" symbol, and if the variable is not included in the problem, enter "dna". Variable Value P. ? F 5000000 i 5.25 10 n A 50000 G dna 3 019 Wile E. Coyote wants to have $5,000,000 at the end of ten years to be able to afford the new ACME Rocket. Mr. Coyote intends to invest today $50,000 and then deposit a yearly amount that will increase with the inflation (assume 3% inflation). The interest rate ACME bank is offering is 5.25% per year compounded yearly. What is the yearly amount that Mr. Coyote needs to deposit to have $5,000,000 at the end of 10 years? Instructions: Consult the cash flow diagram and functional notation and calculate the answer: Note: Enter the answer in the format 1234.00, without commas, or any symbol. Wile E. Coyote wants to have $5,000,000 at the end of ten years to be able to afford the new ACME Rocket. Mr. Coyote intends to invest today $50,000 and then deposit a yearly amount that will increase with the inflation (assume 3% inflation). The interest rate ACME bank is offering is 5.25% per year compounded yearly. What is the yearly amount that Mr. Coyote needs to deposit to have $5,000,000 at the end of 10 years? Note: you do not have to solve this problem, just identify the variables (you may have to calculate an interest rate in some problems). Instructions: Consult the cash flow diagram your drew before and select, from Mr. Coyote's perspective, the problem set up that best describes this problem: F=-$50,000(F/A, 3%, 5.25%, 10) F=$50,000(P/F, 5.25%, 10) + A (P/A, 5.25%, 10)(F/P,5.25%,10)+$5,000,000 A= $50,000 (A/P, 3%, 10) + $5,000,000 (A/F, 5.25%, 10) A = ($5,000,000 - $50,000(F/P, 5.25%, 10)] / [(P/A, 3%, 5.25%, 10) (F/P, 5.25%, 10)] P=-$50,000(P/A, 3%, 5.25%, 10) Draw a cash flow diagram on a piece of paper, from Mr. Coyote's perspective, and enter in the table below all the values you identify in your CFD. Note: you do not have to solve this problem, just identify the variables (you may have to calculate an interest rate in some problems). Instructions: Enter in the table below the values for each variable, from Mr. Coyote's perspective as follows: 12345 (for receipts) or -12345 (for disbursements) and 12.34 for interest rates. For the unknown variable enter a question mark "?" symbol, and if the variable is not included in the problem, enter "dna". Variable Value P. ? F 5000000 i 5.25 10 n A 50000 G dna 3 019 Wile E. Coyote wants to have $5,000,000 at the end of ten years to be able to afford the new ACME Rocket. Mr. Coyote intends to invest today $50,000 and then deposit a yearly amount that will increase with the inflation (assume 3% inflation). The interest rate ACME bank is offering is 5.25% per year compounded yearly. What is the yearly amount that Mr. Coyote needs to deposit to have $5,000,000 at the end of 10 years? Instructions: Consult the cash flow diagram and functional notation and calculate the answer: Note: Enter the answer in the format 1234.00, without commas, or any symbolStep by Step Solution
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