Steve Newman will invest $10,240 today in a fund that earns 12% annual interest. Click here to view factor tables. How many years will it take for the fund to grow to $50,044? (Round answer to O decimal places, e.g. 125.) Years

Steve Newman will invest $10,240 today in a fund that earns 12% annual interest. Click here to view factor tables. How many years will it take for the fund to grow to $50,044? (Round answer to O decimal places, e.g. 125.) Years

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter2: Descriptive Statistics

Section: Chapter Questions

Problem 17P: Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual...

See similar textbooks

Related questions

Q: Spot and forward rates (LO21-2) 1. The Wall Street Journal reported the following spot and forward…

A: Spot rate = $0.8202 per SF30-day forward rate = $0.8244 per SF90-day forward rate = $0.8295 per…

Q: Cooperton Mining just announced it will cut its dividend from $4.08 to $2.45 per share and use the…

A: The DDM refers to the method of calculation of the value of stock based on the future dividends that…

Q: Consider a 20-year, $185,000 mortgage with a rate of 6.35 percent. Five years into the mortgage,…

Q: Consider the following project for Hand Clapper, Incorporated. The company is considering a 4-year…

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

Q: 6. Lucron Corp. is considering a project that will cost $310,000 and will generate after-tax cash…

A: As per guidelines, first question will be solved , for others repost question.

Q: Calculate net working capital and the cash inflows and outflows due to investment in working…

A: Net Working CapitalNet Working Capital (NWC) is a financial tool that measures the difference…

Q: Find the F value for the negative cash flows shown in the table: Year O 1 -100 14% 2 -100 14% 3 -100…

A: F value of a cash flow is nothing but the short form that is provided to denote the future value of…

Q: (Net present value calculation) Carson Trucking is considering whether to expand its regional…

A: Net present value is used to evaluate the investment and financing decisions that involve cash flows…

Q: A credit card account had a $299 balance on March 5. A purchase of $184 was made on March 12, and a…

A: The account has a starting balance on March 5, a purchase on March 12, and a payment on March 28.…

Q: Consider an investment fund that starts out with £180,000. After one year, the value of the fund is…

A: The Time Weighted Rate of Return (TWRR) measures how well an investment grows over time, ignoring…

Q: A five year bond pays interest $85 once a year and will mature for $1000. YTM is 10%. Determine the…

A: Macaulay Duration Formula: Macaulay Duration (MD) = (C1*t1 + C2*t2 + ... + Cn*tn) / (PV + FV) /…

Q: stable in the next few years. Calculate the return that an investor purchasing the bond today should…

A: Yield to call is used to determine how much money an issuer would return on a bond or preferred…

Q: What is the Net Present Value of the second 50 years of the following hunting lease? Length = 100…

A: Duration: 100 yearsCash flow per year: $1000Interest rate: 7.73%

Q: Kaan, a 55-year-old software engineer, earned a pre-tax income of $200,000 in 2024. He plans to quit…

A: The objective of the question is to calculate Kaan's nominal and real returns on his investments…

Q: Mavis never went to university, so when her daughter, Charita was to go to university, Mavis wanted…

A: Annual tuition fees = $25,000Lump sum in year 5 = $50,000Discount rate = 7%Number of years = 4To…

Q: Renee has two options:(1) She is 25 and her marginal tax rate is 32%. She is planning to invest…

A: Scenario 1:(a) Total value of RRSP at 65:FV≈$2,212,950(b) Tax on RRSP withdrawal at…

Q: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$215,000…

A: Net present value refers to the method of capital budgeting used for estimating the worthfulness of…

Q: ow it's time for you to practice what you've learned. uppose Teresa receives a $37,000.00 loan to be…

A: Loan amount = $37,000.00Interest rate = 8%Number of years = 3 years

Q: CX Enterprises has the following expected dividends: $1.03 in one year, $1.18 in two years, and…

A: Current price of the stock can be determined by discounting all future cash flows in the form of…

Q: An oil and gas producing company owns 48,000 acres of land in a southeastern state. It operates 700…

A: The bid amount for purchasing the property will be the present value of all annual revenues here.…

Q: Al's Infrared Sandwich Company had a book value of $18.00 at the beginning of the year, and the…

A: Here's how to calculate the value per share for Al's Infrared Sandwich Company:1. Dividend Discount…

Q: Kaan, a 55-year-old software engineer, earned a pre-tax income of $200,000 in 2024. He plans to quit…

A: Kaan's Investment Returns and Account Balances1. Investment Returns:Nominal Rates:Nominal before-tax…

Q: A bond has a current price of $ 1,030. The yield on the bond is 8.00%. If the yield changes from

A: Duration of bond shows the period required to recover the weighted cash flows from the bond.

Q: On April 1, $25,000.00 364-day treasury bills were auctioned off to yield 3.29%. (a) What is the…

A: As per the guidelines, the solution for the first three subparts will be provided. If you want the…

Q: 4. If you deposit $4,500 at the end of each of the next 30 years into an account paying 7.9 percent…

A: Annual deposit (P) = $4,500Rate of return (r) = 7.9% or 0.079Number of years (n) = 1) 30 and 2) 40We…

Q: Assume you won the state lottery and you are entitled to $5,000,000. If you choose not to take the…

A: Present value of the amount = $5,000,000Amount to be received weekly over next 10 years1 year = 52…

Q: Consider historical data showing that the average annual rate of return on the S&P 500 portfolio…

A: T bill rate: 5%Standard deviation of market index: 26%Return of market index: 8%+T bill rate

Q: The following information relates to Samson Engineering as at 30 June 2023: RProfit for the year180…

A: The objective of the question is to calculate the total non-current assets, total current assets,…

Q: Suppose DeGraw Corporation, a U.S. exporter, sold a solar heating station to a Japanese customer at…

A: When the bills are settled in foreign exchange currency, the company always has a risk of conversion…

Q: You have a potential project for which you want to establish the value of any possible real options.…

A: The concept of real options, derived from financial option theory, extends beyond traditional…

Q: Midland Petroleum is holding a stockholders' meeting next month. Ms. Ramsey is the president of the…

A: Corporate Finance, encompasses the structures and processes by which companies are directed,…

Q: TT, Inc., has a bond outstanding with a coupon rate of 5.84 percent and quarterly payments. The…

A: Here,Par Value of Face Value of Bond is $1,000Coupon Rate is 5.84%Frequency of Coupon Payment in an…

Q: A factory costs $350, 000. You forecast that it will produce cash inflows of $80, 000 in year 1, $…

A: Initial Cost = i = $350,000Cash Flow for Year 1 = cf1 = $80,000Cash Flow for Year 2 = cf2 =…

Q: You have 20 years left for your retirement. You wish to accumulate a sum large enough by that time…

A: Compound = Monthly = 12Number of Payment before retirement = nbr = 20 * 12 = 240Annual Payment after…

Q: Suppose the exchange rate between US dollars and Swiss francs is SF 1.41=\$1.00 , and the exchange…

A: Exchange rate (ER) is a value at which 2 different currencies are exchanged or traded. ER is…

Q: One can solve for payments (PMT), periods (N), and Interest rates (1) for annuities. The easiest way…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: The following table shows risk and return measures for two portfolios. Portfolio Average Annual Rate…

A: Average annual return on R = 11%Average annual return on S&P 500 = 14%Standard deviation on R =…

Q: Table 9.2. Average Returns for Bonds 1958 to 1959 1968 to 1969 Average Average Average Average…

A: Average return for bondsStandard deviation for…

Q: A cash flow of $25,000 is paid 30 times per year for the next 52 years. The NAR53 is 30%. What is…

A: The objective of this question is to calculate the present value of a series of cash flows that…

Q: Stafford loans are the most popular form of student loan in the United States. The current interest…

A: Loan amount = $29,000Interest rate = 4.34%Number of years = 4 years

Q: A bank pays interest at the nominal rate of 8.3% per year. Find the following effective yields.…

A: Variables in the question:Nominal rate=8.3% per yearFormula for calculating effective yield is…

Q: Assume that the one-year rate (short-term) over the next 3 years are 2023: 4% 2024: 5% 2025: 6% (1)…

A: The objective of the question is to calculate the two-year and three-year long-term interest rates…

Q: Payments in years 1 through 6 are 340, 100, 0, 200, 500 and 0 respectively. What is the total…

A: Payment in year 1 = P1 = 340Payment in year 2 = P2 = 100Payment in year 3 = P3 = 0 Payment in year 4…

Q: Colgate-Palmolive Company has just paid an annual dividend of $1.39. Analysts are predicting…

A: When the company receives profits and distributes them among the shareholders. That share of profit…

Q: Bruin, Inc., has identified the following two mutually exclusive projects: Cash Flow (A) Cash Flow…

A: Internal Rate of Return (IRR) is the discount rate at which the present value of cash inflows equals…

Q: ago a borrower took a mortgage for $150,000 at 6% for 30 years We call this 30-year mortgage as the…

A: Here,Old Mortgage Amount $ 150,000.00Interest Rate of Old Mortgage6%Time Period of Old Mortgage30Old…

Q: All else constant, a bond will sell at A B a premium; equal to E at par; greater than (C) at par;…

A: As per the Bond pricing theory, A Bond will be selling it's par value , if the yield to maturity =…

Q: 4 5 6 7 8 a 9 Purpose of the homework: 1. Students will learn the composition of Dow Jones…

A: The objective of this question is to understand how the Dow Jones Industrial Average (DJIA) is…

Q: 7. A company has issued a $1,000,000 floating rate note with a coupon rate equal to the three- month…

A: Coupon payment:A coupon payment denotes a periodic interest payment made by a bond issuer to the…

Q: A firm has 17M in debt and 83M in equity. It's cost of debt is 3.8% , tax rate 23% and beta of 1.8.…

A: WACC decrease by 2.06% Note: % are rounded off to two decimals.Explanation:

Question

don't use chatgpt,i will 5 upvotes

Steve Newman will invest $10,240 today in a fund that earns 12% annual interest.
Click here to view factor tables.
How many years will it take for the fund to grow to $50,044? (Round answer to O decimal places, e.g. 125.)
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: Formulation of Compound Interest Formula

VIEW

Step 2: Rearranging the Formula to Solve for n

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table: Which of the two mutual funds performed better over this time period?
Bo Newman will invest $10,000 today in a fund that earns 5% annual interest. How many years will it take for the fund to grow to $17,100?
Your objective is to have $25,650 in exactly 15 years. Today you invest $9,000 in a Schwab ‘Differential Rate’ stock fund. For the next 7 years Schwab guarantees that your investment will earn a 6.1 % annual interest rate. To achieve your objective, during the final 8 years the Schwab fund must pay an annual interest rate of:
Suppose an individual invests £25,000 in a load mutual fund. The load fund entails an up-front commission charge of 4 percent of the amount invested and is deducted upfront. In addition, annual fund operating expenses are 0.85 percent, which is charged on the average net asset value invested in the fund. The return on this fund is 6 percent each year paid on the last day of the year. What would be the investor’s return on this fund after one year?
Sam Hart decides to invest $70,000 in a fund that will earn 6% annual interest, compounded semiannually. How much will his investment be worth in three years? Draw a timeline to illustrate the problem. What is the future value of your investment? (Use the present value and future value tables, a financial calculator, a spreadsheet or the formula method for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest cent, $X.XX.)
Bylo Selhi wants to know how many years it will take for his mutual fundinvestment of $50,000 to reach $500,000 if his mutual fund pays an averageof 12 percent per year.
Sally Medavoy will invest $8,000 a year for 20 years in a fund that will earn 6% annual interest. If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the first payment occurs at year-end, what amount will be in the fund in 20 years?
You are considering investing $1,000 in an investment fund at the end of every quarter for the next 6 years. The first investment will be made at the end of the coming quarter. The fund is expected to earn an interest rate of 10% p.a., with interest compounded quarterly. At the end of 6 years, the total dollar value in this investment fund will be closest to: Group of answer choices A.$6,388. B. $7,716. C. $32,349. D. $40,000.
In order to accumulate $1,000,000 over 20 years, how much would you have to invest at the beginning of every three months into a fund earning 7.2% compounded quarterly? a $5,369.45 b $5,169.57 c $5,0128.36 d $5,262.62
An investor wants to accumulate $50,000 in a fund at the end of 20 years. If the investor deposit$1,000 in the fund at the end of each of the first 10 years and $1, 000 + X at the end of each ofthe second 10 years, find the value of X if the fund earns 7% effective. Do the following steps toanswer this problem: a. $1,000 are deposited in the fund at the end of each of the first 10 years. This means thatthis is an example of annuity-immediate. Compute for the accumulated value of the fund inthe first 10 years. Call this T.b. The value of the fund in the first 10 years is T . Solve for the future value of T at the end ofthe next 10 years. Use the formula Future value = P (1 + i) t. Call this answer FV . (2points)c. The target amount of the investor is $50,000. The investment made in the first 10 yearsalone will grow to the value FV at the end of 20 years. So, in the second 10 years, theaccumulated value of the investment must be $50, 000 − FV . What is this value? Call thisU .
Larry James is planning to invest $25,400 today in a mutual fund that will provide a return of 0.10 each year. What will be the value of the investment in 10 years? Round to two decimal places.
You deposit the following at the end of each year into a growth mutual fund that earns 11 percent per year: How much should the fund be worth at the end of 5 years How much interest have you earned in total?