Answered: how long will it take for the tithe to…

Name: a tithe of $35000 is made to a local church. the money is to be invest
Uploaded: 2022-12-02T21:53:20.000Z
Channel: Bartleby
Description: a tithe of $35000 is made to a local church. the money is to be invested and the accumulated amount used to purchase a new youth group bus. how long will it take for the tithe to double in value if the money is invested at 7.75% APR compounded monthl

Business

Accounting

how long will it take for the tithe to double in value if the money is invested at 7.75% APR compounded monthly?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

See similar textbooks

Similar questions

Conestoga Plumbing plans to invest in a new pump that is anticipated to provide annual savings for 10 years of $50,000. The pump can be sold at the end of the period for $100,000. What is the present value of the investment in the pump at a 9% interest rate given that savings are realized at year end?
A restaurant is considering the purchase of new tables and chairs for their dining room with an initial investment cost of $515,000, and the restaurant expects an annual net cash flow of $103,000 per year. What is the payback period?
Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate?
The Ham and Egg Restaurant is considering an investment in a new oven that has a cost of $60,000, with annual net cash flows of $9,950 for 8 years. The required rate of return is 6%. Compute the net present value of this investment to determine whether or not you would recommend that Ham and Egg invest in this oven.
A tithe of $35,000 is made to a local church. The money is to be invested and the accumulated amount used to purchase a new youth group bus. How long will it take for the tithe to double in value if the money is invested at 7.75% APR compounded monthly?
The Fillmore Fan Company sets aside $28,500 from each quarter's profits and invests the money in a special account to help pay for future planned improvements to its facilities. If this account earns 4.75%, how much will it have grown to in three years?
A resident will give money to his town to purchase a statue honoring the town founders and will pay to maintain the work at a cost of $500 per year forever. If an interest rate of 5% is used, and the resident gives a total of $25,000; how much can be paid for the statue?
A local Dunkin’ Donuts franchise must buy a new piece of equipment in 4 years that will cost $81,000. The company is setting up a sinking fund to finance the purchase. What will the quarterly deposit be if the fund earns 16% interest?
A business man must fund an account for him to pay the maintenance of the building after it shut down in 10 years. The costs until the business shutdown is part of the operating cost of the business while the maintenance costs starts in 10 years at 23,000 annually. Draw the cash flow diagram and solve on how much money should be deposited if the fund earns an interest of 12 percent?
A local retail franchise must buy a new piece of equipment in 6 years that will cost $89,000. The company is setting up a sinking fund to finance the purchase. What will the quarterly deposit be if the fund earns 12% interest, compounded quarterly
A business set up a sinking fund so they will have a 62,000.00 to pay for a replacement piece of equipment in 11 years when the current equipment will be sold for scrap. If they make deposit at the end of every 2 months for 11 years in the investment that pays 7.4% compounded every 2 months, what size should each payment be?
The neighbourhood grocery store owned by Raoul needs $22,500 to upgrade its fixtures and coolers. If Raoul contributes $3,000 at the start of every quarter into a fund earning 5.4% compounded quarterly, how long will it take him to save up the needed funds for his store's upgrades?