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EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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years it will take for your investment to double."
Transcribed Image Text:If you have an investment that is earning 5.5% annually, use the Rule of 72 to estimate how many
years it will take for your investment to double.
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- If you want to save $50,000 in 8 years, you will earn 6.5% on your investment. a. How much will your payments be annually? b. Identify N, PV, FV, PMT, and I/R, and the formula used to calculate the payment.arrow_forwardAn investment pays you $100 at the end of each of the next 3 years. The investment will then pay you $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of year 6. If the rate of interest earned on the investment is 8%, what is the present value of this investment? What is its future value? How do you solve this with excel?arrow_forwardAssuming an annual rate of return of 9.5% and depositing $3,000 at the end of every 6 months into your investment account, how much will you have after 30 years?arrow_forward
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- If you pay $500 for an investment that returns $600 in 1 year, whatis your annual rate of return? (20%)arrow_forwardAn investment opportunity requires a payment of $750 for 12 years, starting a year from today. If your required rate of return is 8 percent, what is the value of the investment to you today?arrow_forwardAn investment has an expected return of X percent per year, is expected to make annual payments of $3,170 for 7 years, is worth $14,532, and the first payment is expected in 1 year What is X? Input instructions: Input your answer as the number that appears before the percentage sign. For example, enter 9.86 for 9.86% (do not enter .0986 or 9.86%). Round your answer to at least 2 decimal places. percentarrow_forward
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