CFIN -STUDENT EDITION-W/ACCESS >CUSTOM<
6th Edition
ISBN: 9780357753118
Author: BESLEY
Publisher: CENGAGE C
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 3PROB
Summary Introduction
F plans to invest $500 for 20 years at 12%. The
Future value is the value of the current investment or series of payments in the future compounded at predetermined interest rate for a specified period.
Here,
The future value is “FV”.
The
The interest rate is “r”.
The maturity period of time period is “n”.
The no of compounding in a year is “m”.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Freya plans to invest $1,600 every six months for 25 years. How much will this investment be worth at the end of 25 years if she earns an average annual rate of 8.2 percent interest compounded semiannually?
Can the calculator and excel solution be provided?
Susan plans to make an investment today which promises to return to her $3,000 each year for ten (10) years beginning one year from today. The investment account will earn 6% compounded annually. At the end of ten years, the investment account balance will be zero.Question: Rounding to the nearest whole dollar, what should be the amount of Susan's original investment?
Sally enters into an investment that will guarantee her 5% year if she deposits $2045 each year for the next 10 years. She must make the first deposit one year from today. How much will she have when she makes her last payment 10 years from now? (Please use excel function = FV) to solve
Chapter 4 Solutions
CFIN -STUDENT EDITION-W/ACCESS >CUSTOM<
Ch. 4 - Prob. 1PROBCh. 4 - Prob. 2PROBCh. 4 - Prob. 3PROBCh. 4 - Prob. 4PROBCh. 4 - Prob. 5PROBCh. 4 - Prob. 6PROBCh. 4 - Prob. 7PROBCh. 4 - Prob. 8PROBCh. 4 - Prob. 9PROBCh. 4 - Prob. 10PROB
Ch. 4 - Prob. 11PROBCh. 4 - Prob. 12PROBCh. 4 - Prob. 13PROBCh. 4 - Prob. 14PROBCh. 4 - Prob. 15PROBCh. 4 - Prob. 16PROBCh. 4 - Prob. 17PROBCh. 4 - Prob. 18PROBCh. 4 - Prob. 19PROBCh. 4 - Prob. 20PROBCh. 4 - Prob. 21PROBCh. 4 - Prob. 22PROBCh. 4 - Prob. 23PROBCh. 4 - Prob. 24PROBCh. 4 - Prob. 25PROB
Knowledge Booster
Similar questions
- Ken Francis is offered the possibility of investing $2,745 today; in return, he would receive $10,000 after 15 years. What is the annual rate of interest for this investment?arrow_forwardHannah plans to invest $6,500 at the end of each year for the next eight years. Assuming a 10% interest rate, what will her investment be worth eight years from now?arrow_forwardCarla Willis will invest $26,000 today. She needs $52,317 in 12 years. What annual interest rate must she earn?arrow_forward
- Candice Willis will invest $30, 000 today. She needs $150, 000 in 21 years. What annual interest rate must she earn?arrow_forwardAn investor is considering an investment that will pay $2,150 at the end of each year for the next 10 years. He expects to earn a return of 12 percent on his investment, compounded annually. How much should he pay today for the investment? How much should he pay if the investment returns are received at the beginning of each year?arrow_forwardSharon is planning for her retirement 34 years from now. She plans to invest $5,600 per year for the first 7 years, $7,800 per year for the next 11 years, and $14,000 per year for the remaining 16 years. All of the investments will be made at the end of the year. If Sharon can earn 10% annual return on her investments, what will her retirement fund amount to at the end of 34 years? (Round factor values to 5 decimal places, eg. 1.25124 and final answer to 2 decimal places, eg. 458,581.25) Click here to view factor tables Amount of retirement fund $ Save for Later A Attempts: 0 of 1 used Submit Answerarrow_forward
- Jenny Lopez estimates that as a result of completing her master’s degree, she will earn an additional $6,000 a year for the next 40 years. What would be the future value of these additional earnings based on an annual interest rate of 6 percent?arrow_forwardMary plans to retire in 20 years. She opens up a retirement account with an APR of 5.25% compounded monthly. She will invest $1,163 per month. Round the answer to two decimal places. a. How much money will be in Mary’s retirement account if she continues to make the same monthly investment for 20 years? b. By the time she retires Mary will have contributed how much of her own money overall? c. What percent of the final balance in Mary’s retirement account will be interest?arrow_forwardLee wants to receive $18,000 each year for the next 20 years. Assume a 4% rate compounded annually. How much must Lee invest today?arrow_forward
- Poonam wants to invest in an account today tohave S4000 at the end of 8 years. If she caninvest at 4.25% compounded semi-annually,how much does she need to invest?arrow_forwardA retiree wants to purchase an annuity that will provide her with end-of-year payments for the next 30 years. She wants the first annual payment to be $15,000, and for the payments to grow by 3% each year thereafter. If she can earn 5.5% compounded annually on her investments, what is the purchase price of the annuity todayarrow_forwardHow long will it take for Michelle's investment to be worth $55,000 if she presently has $32,000 and can earn 10% interest, compounded annually?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT