Question
You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $3,000
- You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $3,000 per year, beginning immediately. You will make 4 deposits in an account that pays 5.8% interest. Under these assumptions, how much will you have 4 years from today?
2. Janice has $3,500 invested in a bank that pays 9.4% annually. How long will it take for her funds to triple?
3. You want to buy a new sports car 3 years from now, and you plan to save $4,800 per year, beginning one year from today. You will deposit your savings in an account that pays 4.5% interest. How much will you have just after you make the 3rd deposit, 3 years from now?
4. You want to quit your job and return to school for an MBA degree 3 years from now, and you plan to save $5,000 per year, beginning immediately. You will make 3 deposits in an account that pays 5.9% interest. Under these assumptions, how much will you have 3 years from today?
5.You are offered a chance to buy an asset for $3,600 that is expected to produce cash flows of 750attheendofYear1,1,000 of Year 2, $650 at the end of Year 3, and $4,250 at the end of Year 4. What rate of return would you earn if you bought this asset?
6.What annual payment must you receive in order to earn a 7.4% rate of return on a perpetuity that has a cost of $2,400?
please go in depth for all of them. equations and everything
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started