Earnest T needs $870 for his next trip to Raleigh. He has $540 in cash. How long in years will it take the $540 cash to grow to $870 if Earnest T earns 12.7% per annum on his cash, compounded quarterly? (Enter your answers in years to 2 decimal places, e.g., 12.34)

Earnest T needs $870 for his next trip to Raleigh. He has $540 in cash. How long in years will it take the $540 cash to grow to $870 if Earnest T earns 12.7% per annum on his cash, compounded quarterly? (Enter your answers in years to 2 decimal places, e.g., 12.34)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

See similar textbooks

Related questions

Q: Actual Growth Rate Changes in revenue Base-revenue (beginning-of-period revenue) Actual Growth Rate…

A: Actual growth rate Actual growth rate in revenues for a year is calculated as shown below. Actual…

Q: What is the value today of a money machine that will pay $4,016.00 every six months for 23.00 years?…

A: Value of machine would be present value of payments to be received in future based on interest rate…

Q: 7. Assume you currently have all your wealth ($1MM) invested in the Vanguard 500 fund, and that you…

A: By diversification the risk is reduced and overall rate of return increases and hence it is always…

Q: Suppose you hold a consol bond (a perpetuity bond) that pays an annual coupon of $80 per year and…

A: Annual coupon bond; Existing yield to maturity = 0.05 or 5% New yield to maturity = 0.15 or 15%…

Q: Mrs Galicia gave her sisters $3000 each to invest. The investment will last 8 years. The table shows…

A: Future Value: It shows the future value of the present amount of investment. It is estimated by…

Q: How does forward pe effect the stock market?

A: P/E refers to the price earnings ratio. It is one of the important valuation metrics that we use in…

Q: Suppose health-care reform Y makes it unlawful for insurance companies to deny insurance to persons…

A: In finance when health care related policies are implemented then a cost benefit analysis is done by…

Q: Determine the break-even point in units if fixed costs are increased by $1600, while manufacturing…

A: Break even point is referred to as the point, where the total cost as well as total revenue that are…

Q: find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: The present value of annuity is the equivalent money today that is equivalent to the future cash…

Q: The down payment or equity needed for this investment is $60,000 (outflow) Cash Flow $15,000 5,000…

A: Investment $ 60,000.00 Saving Rate 1.50% Loan Rate 8%

Q: Compare and contrast the lenders financial ratios and for what purpose they use the ratios

A: Financial ratios refer to the relative magnitude of the selected values measured in numerical that…

Q: Suresh, a recently retired teacher, has requested you to help him select one from the following two…

A: Net present value (NPV) NPV is a capital budgeting tool to decide whether the investment is…

Q: Question 1 When pricing an American security in the binomial model, which of the following best…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Calculate annual annuity M=$100 Rate = 7% Time = 12 years A=

A: An annuity is a stream of fixed cash flows occurring at regular intervals. The future value of an…

Q: will generate $1.82 million per year (starting at the end of the first year) in perpetuity.…

A: Net present value is the difference between the present value of cash flow and initial investment…

Q: Suppose you need to have $57,942.00 in an account 25.00 years from today and that the account pays…

A: Present value is the equivalent value today which is equal to future value required tomorrow…

Q: Mickey & Minnie have $41 million in cash. Before they retire, they want the $41 million to grow to…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: A new robot has a first cost of $380,000, and an annual operating cost of $88,000 in years 1 and 2,…

Q: A Rio Tinto corporate bond currently sells for $1,450, which gives it a yield to maturity of 7%. Its…

A: The duration of a bond is a measure of the change in bond prices with the change in the interest…

Q: Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be…

A: The dividend discount model will be used here. As per the dividend discount model the current value…

Q: What is the average daily balance for this account? $ What is the finance charge for the month of…

A: Many credit card companies use the average daily balance method to compute the finance charges on…

Q: A boat purchased for $25,000 depreciates exponentially. After one year, the car is valued at…

A: Purchased Price $ 25,000.00 Present Value $ 20,000.00 Time Period 1

Q: Type of Bond GO190001 MO190002 Characteristics of Bonds An 8.5%, 4-year bond with a par value of…

Q: Colin is analyzing a 3-year project that has an initial cost of $199,800. This cost will be…

A: Average accounting rate of return is calculated with the formula belowARR = Average Net…

Q: A company is considering purchasing a new machine. The machine costs P50,000 and requires…

A: Internal rate of return (IRR) It is a capital budgeting tool to decide on whether the capital…

Q: g Nike's stock price is $68 per share, shares outstanding are $1,600 million, and the company…

A: Company need money and they can raise from the market by issue of new shares but how many shares to…

Q: A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She…

A: Present and Future Values of a growing annuity: The current value of a series of fixed, constant,…

Q: Blue Whale Moving and Storage recently purchased a warehouse building in Santiago. The manager has…

A: When a project is presented, a preliminary analysis must be performed to assess whether or not it…

Q: Use the net price rate to calculate the net price for 40 boxes of computer paper if the unit price…

A: To calculate the net price rate we will use the below formula Net price rate = Unit…

Q: How much will the coupon payments be of a 15-year $500 bond with a 9% coupon rate and quarterly…

A: To calculate the coupon payment amount we will use the below formula Coupon amount = FV*(C/M)…

Q: Your friend waited until her 40th birthday to begin saving for retirement. She places $2,400 per…

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper…

Q: What is a philosophy on hedging investment for multicurrency portfolios.

A: Multicurrency portfolios are those where in a portfolio that consist of currency investments of…

Q: What will be the amount of the sum Rs 1200 for one and half year at 40 percent of interest…

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

Q: Net Present Value (NPV) • Definition • Formula & Calculation in 6 Steps • 2 Illustrative Examples…

A: Hi, since you have posted a question with multiple sub-parts, we will answer the first three as per…

Q: You have located a warehouse property to purchase at a price of $320,000. You plan to make a 20%…

A: Commercial mortgage loans are obtained by business entities for acquiring office buildings, malls,…

Q: e information above changed the interest from .0

A: More is the compounding more is effective interest and more is the future value and more is interest…

Q: Eric and vest $1050 every year in an annuity that pays six. 6% interest compounded annually.…

Q: The company recently invested in a project that has an expected annual cash inflow of P700,000 for…

A: The payback period represents the period that a project takes to recoup the initial investment. The…

Q: How did you find the taxable income in part a

A: Taxable income is the income that is subjected to tax. It is the amount of sales as reduced by cost…

Q: Investing: Lesser-Known Stocks The following question is based on the following information about…

A: The dividend yield is used to measure the amount of return that can be expected by the investor if…

Q: Unfortunately it says that that is wrong, thats the answer i came up with at first also

A: Annual payment (A) = $1050 Annual interest rate (r) = 0.06 or 6% Period (p) = 21 years Total value…

Q: Finding the Target Capital Structure [LO3] Fama's Llamas has a weighted average cost of capital of…

A: The debt equity ratio is ratio of total loan capital to the equity capital in the capital structure…

Q: Five years ago you borrowed $200,000 to finance the purchase of a $240,000 house. The interest rate…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: A stock split will cause a change in which of the following items? Cash Common stock…

A: Stock Split will be reflective of the corporate event in which the share of company will be splitted…

Q: CMS Corporation's balance sheet as of today is as follows: Long-term debt (bonds, at par)…

A: Bonds are debt instruments issued by a company. The company that issues the bond pays a periodic…

Q: explain with detailed reason.

A: NCAA stands for National Collegiate Athletic Association. NCAA is a nonprofit organization that…

Q: What do you think about vanilla options as hedging market risk vehicle? In your answer please…

A: The vanilla options are nothing but buying call and put options and these give opportunity to buy or…

Q: In a gaming room of a high-traffic video arcade wishes to determine the return on its video machine.…

Q: You bought a painting 9 years ago as an investment. You originally paid $163,000 for it. If you sold…

A: EXCEL FORMULA:

Q: Which of the following items in the balance sheet does NOT have a constant relationship with sales…

A: In the percentage of sales method, we forecast line items for the future by using the historical %…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 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

You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You have $29,307.61 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $240,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations. ___years
You have $11,489.64 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $200,000. You expect to earn 11% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number. _____ years
Linda Williams expects to need $ 42,000 for a down payment on a house in six years. How much would she have to invest today in an account paying 6.25 percent in order to have $ 42,000 in six years? (Round answer to 2 decimal places, e.g. 52.75.) $ Present value
You want to retire 32 years from today and buy a beach house in Costa Rica. Today, those houses sell for $267,000 and are expected to increase in price by 2.3% per year. To pay for the house, you will deposit a fixed amount of money at the end of each of the next 32 years into an account that pays 8.1% interest annually. What is the amount of your annual deposit? Answer Format: Positive number rounded to 2 decimal places.
Mickey & Minnie have $41 million in cash. Before they retire, they want the $41 million to grow to $118 million. How many years before Mickey & Minnie can retire if they earn 5.2% per annum on their stash of cash? Assume annual compounding. (Enter your answer in years to 2 decimal places, e.g., 12.34)
You have $9,259.70 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $260,000. You expect to earn 13% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations. ? year
11) Max purchases a lot for $300,000. Max will pay $25,000 dollars at the end of each year. the interest rate is 4% compounded annually, how many full payments must be made? a) what will be the size of the payment one year after the last full payment?
You are scheduled to receive $19,000 in two years. When you receive it, you will invest it for six more years at 9.5 percent per year. How much will you have in eight years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Account value
You plan to deposit $6,000 at the end of each of the next 25 years into an account paying 10.3 percent interest. How much will you have in your account if you make deposits for 25 years? (Do not round Intermedlate calculations and round your answer to 2 declmal places, e.g., 32.16.) b. How much will you have if you make deposits for 50 years? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. a. Future value of 25 deposits b. Future value of 50 deposits K Prev 4 of 30 Next > EA9F9D41-D35...jpeg 8A1B4474-4751...jpeg 8A1B4474-4751...jpeg peg