Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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!

image text in transcribedimage text in transcribed

image text in transcribed

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 symbol

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

Accountancy Analysis Of Financial Statements Analysis Of Financial Statements

Authors: M. Hanif, A. Mukherjee

1st Edition

1642879762, 9781642879766

More Books

Students also viewed these Accounting questions

Question

Who will implement and maintain the project after launch?

Answered: 1 week ago

Question

analyze aesthetic enhancing design rules.

Answered: 1 week ago

Question

apply communication design concepts into creative projects.

Answered: 1 week ago