FUND.OF CORP.FINANCE-CONNECT+ >CUSTOM<
11th Edition
ISBN: 9781259903496
Author: Ross
Publisher: MCG CUSTOM
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Question
Chapter 5, Problem 20QP
Summary Introduction
To determine: The number of periods of investment
Introduction:
The number of periods of investment helps to understand the time required for the money to grow. Suppose a person knows the
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You plan to invest $5,000 into an account. If you would like to have $10,000 in 15 years, what rate of return must you earn?
Question 5 options:
6.02%
5.24%
4.73%
7.55%
7.11%
6. You decide you want to start investing for your retirement and you want to have $650,000. If you save $100 a month in an account that averages a 10% annual rate of return, will you have enough money in 25 years? (Hint: this formula was introduced in Section 1)
5) Suppose you will need $12,000 in 3 years. How much must you invest per month in order to have $12,000 if money earns an annual rate 6% compounded monthly?
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Chapter 5 Solutions
FUND.OF CORP.FINANCE-CONNECT+ >CUSTOM<
Ch. 5.1 - Prob. 5.1ACQCh. 5.1 - Prob. 5.1BCQCh. 5.1 - Prob. 5.1CCQCh. 5.2 - Prob. 5.2ACQCh. 5.2 - Prob. 5.2BCQCh. 5.2 - What do we mean by discounted cash flow, or DCF,...Ch. 5.2 - Prob. 5.2DCQCh. 5.3 - Prob. 5.3ACQCh. 5.3 - Prob. 5.3BCQCh. 5 - You deposited 2,000 in a bank account that pays 5...
Ch. 5 - Prob. 5.2CTFCh. 5 - Charlie invested 6,200 in a stock last year....Ch. 5 - Prob. 1CRCTCh. 5 - Compounding [LO1, 2] What is compounding? What is...Ch. 5 - Prob. 3CRCTCh. 5 - Compounding and Interest Rates [LO1, 2] What...Ch. 5 - Prob. 5CRCTCh. 5 - Prob. 6CRCTCh. 5 - Prob. 7CRCTCh. 5 - Prob. 8CRCTCh. 5 - Prob. 9CRCTCh. 5 - Prob. 10CRCTCh. 5 - Prob. 1QPCh. 5 - Prob. 2QPCh. 5 - Calculating Present Values [LO2] For each of the...Ch. 5 - Calculating Interest Kates [LO3] Solve for the...Ch. 5 - Prob. 5QPCh. 5 - Calculating Interest Rates [LO3] Assume the total...Ch. 5 - Prob. 7QPCh. 5 - Calculating Interest Rates [LO3] According to the...Ch. 5 - Calculating the Number of Periods [LO4] Youre...Ch. 5 - Prob. 10QPCh. 5 - Prob. 11QPCh. 5 - Prob. 12QPCh. 5 - Calculating Interest Rates and Future Values [LO1,...Ch. 5 - Calculating Rates of Return [LO3] Although...Ch. 5 - Prob. 15QPCh. 5 - Prob. 16QPCh. 5 - Calculating Present Values [LO2] Suppose you are...Ch. 5 - Prob. 18QPCh. 5 - Calculating Future Values [LO1] You are scheduled...Ch. 5 - Prob. 20QP
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- You want to have $3.5 million in real dollars in an account when you retire in 50 years. The nominal return on your investment is 8 percent and the inflation rate is 3.5 percent. What real amount must you deposit each year to achieve your goal? A. $20,569.90 B. $6,100.00 C. $21,598.40 D. $21,392.70 E. $19,541.41arrow_forwardYou want to save $800 a month for the next 30 years and hope to earn an average rate of return of 12 percent. How much money will you have after 30 years if you invest your money at the end of each month? $2,795,971.31 $2,681,482.99 $2,823,931.02 $2,523,930.30arrow_forwardQ10. We want to have $100,000 in 10 years for a Wedding. If we can make an investment paying 6% compounded quarterly, what single deposit made now will produce this future value? What is the name of the Table that we would use? 11. For the above problem: What Row would we be in? 12. For the above problem What Column would we be in? 13. What is the “factor” for this problem? 14. What is the answer to this problem?arrow_forward
- 17. Grim Smith plans to invest ¥12 million today. The rate of return has been estimated at 8 percent per year. What is the future value of this investment 11 years from now? use excelarrow_forwardQ10. We want to have $100,000 in 10 years for a Wedding. If we can make an investment paying 6% compounded quarterly, what single deposit made now will produce this future value? What is the name of the Table that we would use? 11. For the above problem: What Row would we be in? 12. For the above problem What Column would we be in? 13. What is the “factor” for this problem? 14. What is the answer to this problem? Varrow_forwardYou want to have $1,970,000 at the end of 22 years. You have $6,000 to invest now, and you will receive $70,000 at the end of 10 years. In addition, you plan to invest an equal amount at the end of every year over the next 22 years to reach your goal. If the annual rate of interest is 6.40% , how much do you have to invest annually? a. $41,586 b. $154,648 c. $36,722 d. $39,503 e. $43,254arrow_forward
- 5. You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal? Answer to the nearest whole number of years.arrow_forward8. How much do you need to save at the end of each year to receive 100 million in 10 years? The interest rate is 10%arrow_forward11. You are planning for an early retirement, so you decide to invest $5,000 per year, starting at age 23. You plan to retire when you accumulate $1,000,000. If the average rate of return on your investments is 8%, which formula in B4 will allow you to determine how many years you must invest?explain in excelarrow_forward
- You hope to have $35,000 in your investment account in ten years. If you invest $25,000 today, what annual rate of return would your investment account need to generate if you make no future deposits? Group of answer choices 3.4% 3.8% 40.0% 1.7%arrow_forward9) If you have $1,000 today and want to invest it at 7% per year, how much will you have after 12 years? A) $3,863.49 B) $2,252.19 C) $1,070.00 D) none of the abovearrow_forwardCompute how much money you would need to invest each year in the future for u+20 years in order to have $1 million in u+20 years if you earn 3.47% per year? U=12arrow_forward
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