Answered: How many years will it take $2,000 to…

Business

Finance

How many years will it take $2,000 to grow to $3,600 if it is invested at 3.25% compounded continuously?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 14EB: How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one...

See similar textbooks

Related questions

Q: The face value of the bond is $10,000 with annual coupon payment. The maturity period is 6 years…

A: The bond duration is used to measure the actual time it takes for the bond to recover its costs…

Q: A woman invests $1,200 at a rate of 7%. Find the time in years that it takes her investment to…

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

Q: For a corporation, what are the advantages of corporate bonds over long-term loans?

A: A corporate bond is a type of financial security issued by a firm and sold to investors. The company…

Q: One university needs some maintenance. The owner of the university decides to deposit $400000 in an…

A: Present worth can be calculated as below Present worth = Cash flow / (1+r)^n It can also be…

Q: How do you find the terminal value using the EV/EBITDA exit multiples

A: TV evaluates a company's worth in perpetuity beyond a predetermined predicted period—typically five…

Q: Find the present value of the following annuities 800 starting at time 1, decreasing by 50 annually…

A: Annuity is a series of regular payments being made for a specified period. When the payments are at…

Q: 21. A friend lends you P500 for a year with 3% interest. How much interest will your friend earn?

A: Here, Lending Amount is P500 Interest Rate is 3% Time Period is 1 year

Q: To save for retirement, Karls Harby put $350 each month into an ordinary annuity for 12 years…

A: Monthly Payment = 350 Time Period = 12 Years Future Value = $79,973.00

Q: What is the difference between the Metric System and the Imperial? Describe what an Orthographic…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: WACC. c) Total value of the fi rm

A: WACC stands for Weighted average cost of capital calculated by multiplying the cost of each…

Q: Jan 2, 2015 Sep 27, 2016 $1.20 $1.12 1 British Pound (GBP) $1.56 $1.30 1 $US 1 Euro 119.69 Yen

A: Given, Jan 2,2015 1 Euro= $ 1.20 $ Euro…

Q: Calculate the YTM II. Calculate YTC

A: Yield To Maturity: It is the expected rate of return on the bond given the bond is held till…

Q: Assume an investor takes a long position in 4 September KLSE CI futures contract on 15th July. The…

Q: e future value and the interest earned

A: Future value refers to the amount of the current asset at some future date based on the assumption…

Q: The market price is $900 for a 15-year bond ($1,000 par value) that pays 9 percent annual…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

Q: aniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next…

A: We need to use additional funds needed (AFN) equation below AFN =AS0*∆S -LS0*∆S -P*S1*(R) Where…

Q: The total interest she paid on the loan was $118. As a percentage, what was the annual interest rate…

A: As we know that the Formula for Simple Interest = (Principle x Rate x Time) / 100 If the interest is…

Q: Lisa deposits $80,000 into an account that pays 6% interest per year, compounded annually. Scott…

A: We need to use simple interest and compound interest formula to calculate Interest earning Simple…

Q: years (the first coupon payment is one year from now). The bond's yield to maturity is 11%. What is…

A: The price of bond is calculated with the help of following formula Price of Bond = Present Value of…

Q: Interpret and contrast the investment risk potentials of an electric vehicle manufacturer whose…

A: P/E ratio is very important in valuation of stock and has been the basis for investment in stock and…

Q: At the end of 3 years, what is the balance?

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: Q9. Given the following probability distributions for the stocks of Celtic plc and Rangers plc…

A: SD is the measurement of risk which shown the risk associated with the return earned from the stock.…

Q: PLEASE DO THIS TYPEWRITTEN AND SKIP IT IF YOU HAVE ALREADY DONE THIS, OTHERWISE DOWNVOTE. I WILL…

A: The question is related to Capital Budgeting. 1. Payback Period is the length of time required to…

Q: Thomas's retirement fund has an accumulated amount of $55,000. If it has been earning interest at…

A: Accumulated Value in retirement Account "FV" is $55,000 Interest rate is 2.44% Compounded monthly…

Q: ollowing information: · Current FCFF $745 million · Outstanding shares 309.39…

A: The overall worth of the firm that may be attributed to equity stake is known as equity value, often…

Q: Explain in detail, using examples where possible, the difference between hedging, speculation

A: In the world of finance and investments hedging and speculation are important concepts. Many…

Q: 3. Compute for the following: Required: Payback period, payback reciprocal, accounting rate of…

A: The question is related to Capital Budgeting. 1. Payback Period is the length of time required to…

Q: A. Contrast the nominal rate of interest with the real rate of interest. B. Why would “a belief in…

A: Average annual return using arithmetic mean method With annual returns r1, r2, r3,.........rn, the…

Q: The market price is $850 for a 12-year bond ($1,000 par value) that pays 11 percent annual…

A: Given, Price of the bond is $850 Face value of bond is $1000

Q: What is the name principal future value a. b. Ob

A: Annuity refers to a series of payments that are made at equal intervals of time.They can be…

Q: Complete the following by calculating the cash discount and net amount paid: (If more than one…

A: Credit terms 4/10, 3/15, n/30 means that if payment is being made in 10 days, then 4% discount will…

Q: National Corporation expects to pay a dividend of P5 per share at the end of year one, P9 per share…

A: The most latest price at which a security was sold on an exchange is the current price. Buyers and…

Q: How much money will he need to deposit into the annuity each quarter for the annuity to have a total…

A: Future Value of Ordinary Annuity: It represents the future value of the annuity cash flows made at…

Q: Hoyden Co.'s bonds mature in 13 years and pay 8 percent interest annually. If you purchase the…

A: Here,

Q: Find the present value of the following annuities: 100 starting at time 8 and increasing by 100…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: On September 1, the home mortgage balance was $238,000 for the home owned by Susan Gonzalez. The…

A: Total monthly payments are calculated in such a way that it includes portion of interest as well as…

Q: Calculate the present worth of 11 uniform payments of $7,200 that begin 1 year from now at an…

A: Present worth is the present value of future payment now (i.e in zero period), which is calculated…

Q: A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is…

A: Here, To Find: Present Worth =?

Q: mount saved on interest

A: Amortized loan refers to the amount of loan which requires regular monthly payments. Every payment…

Q: semi-annual withdrawals of $1,200. After how many withdrawals will your investment be completely…

A: Future Value: It refers to the future worth of the present amount of investment. It is computed by…

Q: A hospital just purchased upgraded software for the Electronic Medical Record surgical dashboard.…

A: NPV is the method under Capital budgeting which help in taking the decision of project feasibility…

Q: Finance 34.Assume that an investor purchased 1 share of XYZ Ltd last year for $36.86 and this year,…

A: Call option is a derivative contract that gives the buyer the right but not the obligation to buy…

Q: At year end, National Corporation balance sheet showed total assets of P70,000,000, total…

A: The Price Earnings Ratio is calculated by dividing Current Market Price per share by Earnings per…

Q: ineer John Cena is planning for retirement decides that he wishes to have income of Php 200,000 per…

A: There is need of planning for retirement and if done on the proper time than you could achieve good…

Q: Several years ago a gold mining company purchased the drilling rights for an area of northern…

A: Sunk cost: Sunk cost is the cost which is already incurred and it is not relevant for decision…

Q: For a put option of CN¥ with $0.14 exercise price and $0.0005 premium, the breakeven spot price for…

A: Given: Exercise price =$0.14 Premium = $0.0005

Q: A condominium unit is offered at Php 950,000 cash or for payments of Php 200,000 now, Php 300,000 in…

A: Cash price of Condominium is Php 950,000 Option -2 Cash payment of Php 200,00 now Payment of…

Q: Receivables Investment Medwig Corporation has a DSO of 37 days. The company averages $9,750 in…

A: Accounts Receivables are the money due towards customers but not yet paid on account of goods sold…

Q: me balance in a Registered Retirement Income - the beginning of each m +

A: Registered retirement income fund refers to the fund related to the annuity in which income is to…

Q: Here is Justin's credit card statement for the month of June. Transaction Date Transaction amount…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Question

Give me answer within 45 min I will give you positive rating immediately ...

How many years will it take $2,000 to grow to $3,600 if it is invested at 3.25% compounded continuously?
(Round to two decimal places)

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

Introduction

VIEW

Working and computation

VIEW

Conclusion

VIEW

Step by step

Solved in 3 steps with 2 images

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

How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?
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 you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
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. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
How many years will it take for $500 to grow to $1,039.50 if it’s invested at 5 percent compounded annually? The number of years it will take for $500 to grow to $1,039.50 at 5 percent compounded annually is Round to one decimal place