Question 3 - Homework 1

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Fayetteville State University *

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320

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Accounting

Date

Feb 20, 2024

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pdf

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1/27/24, 12:51 PM Question 3 - Homework 1 - Connect https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.co… 1/1 eBook Hint Ask References 3 10/10 points awarded Scored Show correct answers Explanation Note: Intermediate answers are shown below as rounded, but the full answer was used to complete the calculation. The time line is: 0 PV $ To find the PV of a lump sum, we use: PV = FV/(1 + r ) t PV = $191,000/(1.11) 8 PV = $82,879.96 Calculator Solution: Enter 8 11% ±$191,000 N I/Y PV PMT FV Solve for $82,879.96 Homework 1 90/100 Total points awarded Help Exit Submitted Suppose you are committed to owning a $191,000 Ferrari. If you believe your mutual fund can achieve an annual rate of return of 11 percent and you want to buy the car in 8 years (on the day you turn 30), how much must you invest today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Investment $ 82,880.32 Prev of 10 Next 3
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