a. What is the present value of a security that will pay $4,000 in 20 years if securities of equal risk pay 5% annually? Do not round intermediate calculations. Round your answer to the nearest cent. ______ b. You have $45,312.74 in a brokerage account, and you plan to deposit an additional $3,000 at the end of every future year until your account totals $230,000. You expect to earn 10% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number. _________ c. If you deposit money today in an account that pays 3.5% annual interest, how long will it take to double your money? Round your answer to two decimal places. ___________ years

a. What is the present value of a security that will pay $4,000 in 20 years if securities of equal risk pay 5% annually? Do not round intermediate calculations. Round your answer to the nearest cent. __ b. You have $45,312.74 in a brokerage account, and you plan to deposit an additional $3,000 at the end of every future year until your account totals $230,000. You expect to earn 10% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number. _ c. If you deposit money today in an account that pays 3.5% annual interest, how long will it take to double your money? Round your answer to two decimal places. _______ years

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 11P

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