FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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You put up $50 at the beginning of the year for an investment. The value of the investment grows 4% and you earn a dividend of $3.50. Your HPR was ____.
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- Suppose you inherited $1,135,000 and invested it at 8.25% per year. How much could you withdraw at the beginning of each of the next 20 years? a. $117,761.21 b. $108,786.34 c. $111,148.74 d. $22,285.19 e. $93,637.50arrow_forwardIf you invest $1,200 for 40 years at an 8.1% rate of return, you will have accumulated: (Keep 2 decimal places)arrow_forwardSuppose you invest $50 each month (starting today) into a mutual fund. You reinvest distributions. At the end of 5 years, you sell all your shares and receive $3,485. Calculate your rate of return.arrow_forward
- How much would you be prepared to pay for a share in 2 years’ time that pays a $1.5 dividend each year constantly ? Assume the required rate of return is expected to remain constant at 9.1% per year.arrow_forwardYou have two opportunities to invest $5,000 for 10 years. The first provides a yield of 8% annually, compounded quarterly. The second provides a yield of 8.5% annually, compounded annually. Which of these investments provides the highest returns? By how much?arrow_forwardYou invested $800 in the stock market 5 years ago. Today your investment is worth $1200. What was the annual return on your investment?arrow_forward
- Assume you can earn 9.4% per year on your investments. a. If you invest $170,000 for retirement at age 30, how much will you have 35 years later for retirement? b. If you wait until age 40 to invest the $170,000, how much will you have 25 years later for retirement? c. Why is the difference so large? a. If you invest $170,000 for retirement at age 30, how much will you have 35 years later for retirement? The future value is $ (Round to the nearest dollar)arrow_forwardSuppose you invest $350 in a CD with an APR of 2.9% compounded daily. Match each expression with what it represents in this context. 0.029 . 100 365 0.029 1+ 365 365(11) 365 0.029 1+ 365 0.029 365 (11) 1+ 365 365 0.029 1+ 100 365 a. The 11-year growth factor b. The number of times interest is compounded in 11 years c. The daily growth factor d. The daily percent change e. None of these. f. The annual growth factorarrow_forwardYou will have $100,000 exactly 7 years from now. You began with an investment of $50,000 at Time Zero. What rate of interest did you earn?arrow_forward
- Suppose you invest $5,000 into a mutual fund that is expected to earn a rate of return of 7%. The amount of money you will have in 10 years is closest to which of the following? The amount you will have in 25Lyears is closest to which of the following? O 1) $53,500; $802,500 O 2) $2,552.56; $3,257.79 O 3) $9,835.76; $27,137.16 O 4) $3,138; $ 1,311,892 5) None of the answers are correctarrow_forwardAn investor plan to invest in a business that will produce a continuos income stream over the next 3 years with rate of flow f(t) = 3+5 ( thounsand of dollars). If the stream earns an interest at 5% coumpound continuously< how much the investor will have by the of third year?arrow_forward1. You just sold a stock for $85. If the stock appreciated at 6% annually, and you owned it for eight years, what was the original price that you paid for the stock? 2. You are considering buying some order fulfillment software that is projected to save your company $27,500 per year for 3 years. If the current rate your company uses to evaluate its investments is 9%, what are you willing to pay for this investment?arrow_forward
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