A principal of 2450 Rials is invested at rate 5.25% compounded quarterly. After how many years the investment first exceed 10000 Rials. Select one: O a. 28 years Ов. 26 year O c. 27 years O d. 6 years O e. 2 years O f. 3 years O g. 5 years

A principal of 2450 Rials is invested at rate 5.25% compounded quarterly. After how many years the investment first exceed 10000 Rials. Select one: O a. 28 years Ов. 26 year O c. 27 years O d. 6 years O e. 2 years O f. 3 years O g. 5 years

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 19E

See similar textbooks

Related questions

Q: ABC Corporation has invested $2.5 million every 3 months in an investment which earns interest at…

A: Present value is the sum of money that must be invested to achieve a specific future goal. Future…

Q: A principal of 7000 Rial is invested at rate 9% interest for 8 years. Determine the future value if…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: you invest $12000 at an annual rate of 3% . Find the balance after 5 years for each type of…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: A debt of RM3,000 will mature in three years’ time. Assuming that the money is worth 14% compounded…

A: Present value = Future value / ( 1 + Periodic interest rate )Number of periods

Q: A principal of $15000 is invested at 8% interest compounded annually. After how many years will the…

A: According to the concept of Time Value of Money, the value of a unit of currency is more in today's…

Q: Annual investments of $1200 are to be made at a savings and loan institution for 10 years beginning…

A: Annual Savings = 1200 End of year savings Nominal Rate = 5% Quarterly Compounding N = 10 years…

Q: Determine the number of years needed for the investment of $8000 compounded quarterly at 3.1 % to…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Margaret Hillman invested $4,000 at 2% compounded quarterly for one year. Find the future value and…

A: Future value of an investment is the value of present amount in future which can be computed using…

Q: P2000 is invested in a high interest account for one and half (1 1/2) years . the interest rate is…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: An investment of $1,050 is made in an account compounded semi-annually at 6.8%. How much will the…

A: It can be calculated using FV function in excel. FV (rate, nper, pmt, [Pv], [type]) Rate The…

Q: $10,000 is invested at 7% compounded annually. Over the next 25 years, how much of the investment's…

A: Simple interest It is the interest amount earned on the original principal. It remains the same for…

Q: An initial investment of $480 earns interest for 7 years in an account that earns 13% interest,…

A: Future Value = Present Value * (1+r)^n where r =rate of interest per period i.e. 13%/4 = 3.25% n =…

Q: If $1,000 is invested today at Bank Alfalah ltd and $1,000 is invested at the beginning of each of…

A: The amount of payments made at the beginning of each year is termed as an annuity due. It indicates…

Q: A principal of 2450 Rials is invested at rate 5.25% compounded quarterly. After how many years the…

A: Given in the Question Principal = 2450 Riyals Rate = 5.25% Compounded Quarterly

Q: $3,000 is invested at 8%p.a compounding semi-annually for the first 3 years and at 13% p.a…

A: The compounding method is an important technique of the time value of money. The compounding…

Q: invests $80,000 today at 10% per annum, compounded quarterly. What will the balance of Sam's…

A: Effective rate = 0.10/4 = 0.025 n = 5 * 4 = 20 Current amount = 80000

Q: A company wants to deposit $500,000 per year in an investment which earns interest of10 percent per…

A: The value at the end of the 10 deposit is the future value of the first 10 deposits.

Q: An investment required an initial payment of $10,000 and annual payments of $1,500 at the end of…

A: First we need to calculate present value of total outflows PV of outflows =initial payment +PMT…

Q: What will be the maturity value of P12,000 invested for four (4) years at 15% compounded quarterly?…

A: The question is based on the concept of the time value of money, the value of money keeps on…

Q: An investment has grown to $5,550 in an account compounded annually at 2.4% after 5 years. How much…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Calculate the present value of $5,000 received five years from today if your investments pay: 6…

A: Given:

Q: 1. If ₱40,000 is invested for 6 years at 5% compounded quarterly. a. Find the compound amount. b.…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: An investment of $8,000 is made at time 0 with returns of $3,500 at the end of each of years 1–4,…

A: present worth formula: pw=-initial investment+present value of future cashflow

Q: An investment of $4,000 accumulates at a force of interest δt = 0.022t. Calculate the annual…

A: In order to solve for the rate of interest it is important to solve the equation given.

Q: An investment of P50,000 is made at the beginning of each month for 5 years. How much will the…

A: The investment value can be calculated as future value of annuity due

Q: If 2400 dollars is invested in an account for 10 years. Find the value of the investment at the end…

A: Future value(FV) is the value of initial investments at a future date after compounding it with a…

Q: etermine the value of each of the following accounts after 1616 years. Initial investment is $5000…

A: formula for continuous compounding: p=p0×ert where, P0= initial investment r = APR t = no of years

Q: Margaret Hillman invested $7,000 at 1.8% compounded quarterly for one year. Find the future value…

A: GIVEN THAT, Amount invested (P) = $7000 compounding = 4times a year = 1/4 rate of interest = 1.8%…

Q: If $12,000 is invested at an interest rate of 10% per year, find the amount of the investment at the…

A: Given:

Q: If $20,000.00 is invested in an account for 15 years. Find the value of the investment at the end of…

A: Amount Invested = $20,000.00 Years = 15 years For Simple Interest Rate = 8% per annum For Compound…

Q: Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the…

A: Future Value = Present value * (1+rate)^no. of period

Q: How much interest was earned by an investment that earns at a rate of 9% compounded semiannually for…

A: The present value is that amount without which we cannot obtain the future value. The future value,…

Q: An investment with an original value of $11 000 is sold for proceeds of $12 950.00. If the…

A: Investment yield is simply the rate through which an investment increases over the years and it is…

Q: Compute the future value of the following single investments: 2. P20,000 at 8% interest compounded…

A: The future value function can be used to compute the required value after 4 years

Q: A $90,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the…

A: Net Present Value is the difference between the present value of cash inflows and cash outflows.

Q: Find (a) the compound amount and () the compound interest rate for the given Investment and annual…

A: Compound amount can be calculated as: = Initial amount * (1+rate)^years Interest = Compound amount -…

Q: A principal of $1600 is invested at 5.5% interest, compounded annually. How many years will it take…

A: Present Value is the concept that states an amount of money today is worth more than that same…

Q: If $10,000 is invested in a certain business at the start of the year, the investor will receive…

A: Basic Details: 1. Amount Invested = $10000 2. Annual Cash Flow = $3000 3. Term = 4 Years 4. Interest…

Q: i. 100 is deposited into an account at the beginning of every 4-year period for 40 years.The account…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: (FORMULA) An investment of $2500.00 earns interest at 8.25% p.a. compounded monthly for 3 years. At…

A: Initial Investment is $2500 Interest rate is 8.25%P.a. compounded monthly for 3 years New Interest…

Q: Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the…

A: Data Given: Principal (P) = $10,000 Interest rate (r ) = 3% per year. Compounded quarterly =…

Q: Jorgen Grace made deposits of $250 at the end of each year for 12 years. The rate received was 6%…

A: Using excel PV function

Q: A principal of P27,000 was placed in an investment which gives the interest of 12% compounded…

A: Future Value = Present Value x (1 + r)^n

Q: Mr Cruz invest 50,000 now and yields P14,025.50 at the end of 5th year, P34,363.72 at the end of the…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: I) A principal of 7650 OMR is invested at rate of 3.7% compounded continuously. After how many years…

A: Principal Amount = 7650 OMR Interest Rate = 3.7% Compounded continously Investment Became = 12250…

Q: A man deposits a uniform amount of P 2,500 at the end of each year with interest of 2.50% compounded…

A: A Uniform amount of deposits is a series of payments at equal time intervals such as annually,…

Question

100%

A principal of 2450 Rials is invested at rate 5.25% compounded
quarterly. After how many years the investment first exceed
10000 Rials.
Select one:
О a. 28 years
O b. 26 year
О с. 27 уears
O d. 6 years
O e. 2 years
O f. 3 years
O g. 5 years

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second year. What is the payback period? a. 1.67 years b. 0.50 year c. 2.00 years d. 1.20 years e. Cannot be determined
Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)
How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
If current assets are $100,000 and current liabilities are $42,000, what is the working capital? A. 200 percent B. 50 percent C. 2.0 D. $58,000
A principal of 2450 Rials is invested at rate 5.25% compounded quarterly. After how many years the investment first exceed 10000 Rials.a)After how many years will it be worth 1 million Rial? b)Find the value in 10 years' time?
To what amount will the following investments accumulate? a. $5,000 invested for 10 years at 10 percent compounded annually b. $8,000 invested for 7 years at 8 percent compounded annually c. $775 invested for 12 years at 12 percent compounded annually d. $21,000 invested for 5 years at 5 percent compounded annually use excel to work this out and show the formula!
An investment with an original value of $11 000 is sold for proceeds of $12950.00. If the investment yield was 5% compounded semi-annually, for howmany years was the money invested?
An investment of S6,560 earns interest at the rate of 5% and is compounded quarterly. What is the accumulated value of the investment at the end of 7 years? USe A = P (1+r/n)nt a59.289.00 b. S6,794.00 c. $11.245.00 d. $2.296.00
A $90,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the first year. Each successive year yields a return that is $3,000 less than the previous year’s return. If money is worth 5%, use agradient series factor to determine the equivalent present worth for theinvestment.
Please calculate this below (incl. the formula):a. What is PV of $100 received in year 10, with 1% discount rate?b. Hans made investment $10 million with interest rate 6% per annum. What is the value of Hans's investment after 4 years and interest compound annually.
The current amount A of a principal P invested in a savings account paying an annual interest rate r is given by A = P(1+r/n)^(rt) where n is the number of times per year the interest is compounded. For continuous compounding, A = Pe^(rt). Suppose $10,000 is initially invested at 2.5 percent (r = 0.025). a. Plot A versus t for 0 ≤ t ≤ 20 years for four cases: continuous compounding, annual compounding (n = 1), quarterly compounding (n = 4), and monthly compounding (n = 12). Show all four cases on the same subplot and label each curve. On a second subplot, plot the difference between the amount obtained from continuous compounding and the other three cases. b. Redo part a, but plot A versus t on log-log and semilog plots. Which plot gives a straight line?
1i. A sum of £100 is invested in a savings account at the end of each quarter for seven years. Interest earned is 8% per annum compounded quarterly. Compute the future value of this investment. ii. £50 was deposited in a savings account at the end of each quarter at 7% interest per annum compounded quarterly. After n years, this investment had attained a value of £1475.55. Evaluate n.