Find the future worth in year 10 of an investment that starts at $1700 in year 1 and increases by 9% each year. The interest rate is 15% per year. Select one: O a. 31210 O b. 11753 O c. 39665 O d. 47601 O e. 7706

Find the future worth in year 10 of an investment that starts at $1700 in year 1 and increases by 9% each year. The interest rate is 15% per year. Select one: O a. 31210 O b. 11753 O c. 39665 O d. 47601 O e. 7706

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 9EB: If you invest $15,000 today, how much will you have in (for further instructions on future value in...

See similar textbooks

Related questions

Q: Find the annual worth (AW) of the following investments (from year 1 to year 20) if you invest $600…

A: Investment schedule:

Q: An investment is offered whereby £1000 is invested immediately, £2000 is invested in exactly…

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

Q: What is the initial value of an investment that has a value of $6245.30 after 6 years at a 5.5%…

A: The initial value can be calculated using the Present Value formula.

Q: Which of the following investments has a larger future value: Investment A, a $1,000 investment…

A: Given:

Q: Calculate the future worth (in year 11) of the following income and expenses, if the interest rate…

A: Computation of net amount:

Q: Apply the concept from page 8-7 “Interest rates and compounding periods,” you have the opportunity…

A: Future Value = Present Value x (1 + r)^n Compounding Frequency = monthly

Q: Use the compound interest formula A=P(1+rn)ntA=P(1+rn)nt or A=PertA=Pert to solve.

A: Compound Interest is the additional interest earned on the interest of principal or loan amount,…

Q: What is the present value of a 15 year investment amounting to Ᵽ 45,670 if the prevailing interest…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: What is the future value of $11,000 invested for one year at an interest rate of 6% p.a.? a. $17000…

A: Given, PV = 11000 Rate = 6%

Q: Find the future value (A) of each of the following investments. Use an exact interest year where…

A: The future value formula A = P + I Where P=Principal and I=Interest Interest(I)=Prt Where…

Q: An investment of $7000 at 3% is compounded semiannually for six years. Find the future value and…

A: Interest is an additional amount which is paid on amount borrowed by considering time period. There…

Q: .If you invest $10,000 now into a project that will yield net revenues of $1.327 at the end of each…

A: Internal rate of return (IRR) refers to the discount rate that is associated with an investment's…

Q: you pay for an investment that pays you $32000 at the beginning of each year for the next ten years?…

Q: What is the present value of an investment that promises to pay the investor $6,500 at the end of…

A: Per year payment(annuity) = $6500 Time =9 years Rate =14% *end of the year payment

Q: What is the future value of GH¢ 1,200 a year for 40 years at 8 percent interest? Assume annual…

A: Annual deposit (P) = 1200 Interest rate(r) = 8% = 0.08 Years(n) = 40 Therefore, Future value = P*…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: To calculate the present value we will use the below formula Present value = FV/(1-d)n Where FV -…

Q: Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of…

A: Annual deposit for 3 years = $ 1000 Annual interest rate = 5% Future value period = 4 Years

Q: On 1 January 2019 the total present value of all the investments is R75,998.34. If the interest rate…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: Future value after 12 years (FV) = $1,000 Quarterly period (p) = 48 (i.e. 12 years * 4) Quarterly…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: Present value is the value of an investment that is in today’s term. It helps to make decisions…

Q: Calculate the future value for the following investment’s Initial investment of $6,000, maturity 5…

A: Future value = present value * (1+ rate)^no. of period

Q: An investment offers to pay $600 quarterly for 21 years with an interest rate of 6%, how much is…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: %.

A: Present Value = First cashflow + Cash flow * PVAF(r, n) = First cashflow +…

Q: An investment opportunity requires a payment of $910 for 12 years, starting a year from today. If…

A: The question gives the following information:

Q: Now, I want you to answer these; a) If the value of investment is P250, 000 yielding an interest of…

A: Future value of investment can be calculated using FV function in excel. FV (rate, nper, pmt, [Pv],…

Q: You purchase an investment for $1,000. You expect it will increase in value at a rate of 9% per…

A: Initial Investment is $1,000 rate is 9% per yeat time period is 12 years To Find:- Worth of…

Q: Compute the future value of $396 invested every year if the appropriate rate is 11.2% and you invest…

A: The future value of the annuity is the total value of all the payments which occur regularly at a…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: Given information : Time period = 4 years Interest rate = 10 % Future value of investment = $1000

Q: What would you pay for an investment that pays you $34000 at the beginning of each year for the next…

A: Given: Rate of investment (r) = 11% = 0.11 Annuity (A) = 34000 Time period = 10 years

Q: Each and every year $7,500 is invested at 4% annual compound interest.a. What is the value of the…

A: Part a) Value of investments at different time periods : Results obtained :

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: Future compounded amount(A)=PV1+rnnt

Q: An investor is presented with an investment proposal which produces a continuous income stream of…

A: Future Value is referred as the current asset value that will be changed at future date on the basis…

Q: opose an investment opportunity is advertising an interest rate of iR per year compounded…

A: In this we need to find the effective interest rate and amount of deposit required today.

Q: The present worth of income from an investment that follows an arithmetic gradient was projected to…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: Suppose $1000 is invested at the end of each year. Assume the investments earn 10% compounded…

A: Future Value = P(1+r/n)^ntWhere P = Principal = $1000R = Rate on interest = 10%N = number of times…

Q: 3. Your investment will pay $500 at the beginning of each of first 2 years, $100 at the end of…

A: Present value can be calculated by using this equation PV =FV/(1+r)n and FV =PV(1+r)n where PV…

Q: What is the future value of $3,078 invested for 8 years at 6 percent compounded annually? Multiple…

A: Time value of money (TVM) concept refers to the method used to measure the value of money at…

Q: I need to answerthese questions can you help me out, Questions 4,5 4- What is the current value…

A: Note: It is a case where no single question is specified to solve among the multiple questions…

Q: If the interest payments are done semi-annually, what is the initial investment to be so that 6…

A: Semi-annual interest rate (r) = 26%/2 = 13% = 0.13 Number of semi-annual periods = 6 years x 2 = 12…

Q: 1) A company is expected to result 2900$ savings first year then increase by 200$ annually, if the…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Suppose that you have the opportunity to receive $24,000 per year for the next 6 years. Over this…

A: Present value amount refers to the values of money in current period for all future expected cash…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: 18. Compute the future value of a $100 investment for the following combinations of rates and times:…

A: Using future value function in excel

Q: Ineed to answerthese questionscan you help me out, Questions 4,5 4- What is the current value ofthe…

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

Find the future worth in year 10 of an investment that starts at $1700 in year 1 and increases by 9% each year. The interest rate is 15% per year.
Select one:
O a. 31210
O b. 11753
O c. 39665
O d. 47601
O e. 7706

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

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 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

If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%
If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
Calculate the future value of an investment if the annual interest rate is 9%, number of payments is 30, and each payment of $1000 is made at the end of the year. A. $102,893 B. $136,308 C. $108,212 O D. $98,234
An investment will pay $600 at the end of each of the next 2 years, $700 at the end of Year 3, and $1,000 at the end of Year 4. What is its present value if other investments of equal risk earn 6 percent annually? a. $1,821.82 b. $1,913.83 c. $2,297.07 d. $2,479.86 e. $2,735.85
An investment pays $200 at the end of Year I. $250 at the beginning* of Year 2. $387 at the end of Year 4. and $500 at the beginning of Year 6. If other investments of equal Mk earn 7.5% annually. what will be this investments present value and future value?
answer if its true or false 1) Based on the following information calculate the value at time 2 of the investment made at time zero. This future value is equal to 113. discount time investment (years) rate 6% 100 1
You deposit $2500 each year into an investment account that earns 8.5% interest for 20 years.Find the value of sn\i. Group of answer choices 11.76470588 16.87675201 51.10869654 48.37701323
4. Find the future worth in year 10 of an investment that starts at P8000 in year 1. The interest rate is 10% per year.
Consider an investment which pays $3,000 at the end of year 1, year 2, and year 3. In year4, the investment will pay $4,000 and this payment will grow by 2% each year forever. If theappropriate interest rate is 9%, what is this investment worth today? (Show Using BA II Plus or By Hand)
which of the following investments that pay will $5000 in 12 years have a higher price today? A. The security that earns an interest rate it 8.25% B. The security that earns an interest rate of 5.50%?
If the current rate of interest is 5%, then the future value (FV) of an investment that pays $1,000 per year and lasts 15 years is closest to: A. $12,947 B. $25,895 C. $21,579 D. $30,211
ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? 4 5 6 27 28 29 C. Suppose you invest St $ 570 monthly. What is the future value of the investment in 29 years, if interest at 5% is compounded monthly? Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A W +