Your great-grandmother saved $100 to deposit into an account when each of her children was born, including your grandfather. On his 70th birthday, the value of your grandfather's account was $278,780. What is the IRR of this investment over this 70-year period? a. 10% b. 18% c. 12% d. 2788% e. You cannot find the IRR without knowing the MARR first
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Your great-grandmother saved $100 to deposit into an account when each of her children was
born, including your grandfather. On his 70th birthday, the value of your grandfather's
account was $278,780. What is the IRR of this investment over this 70-year period?
a. 10%
b. 18%
c. 12%
d. 2788%
e. You cannot find the IRR without knowing the MARR first
Step by step
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- Your grandparents would like to establish a trust fund that will pay you and your heirs $120,000 per year forever withthe first payment one year from today. If the trust fund earns an annual return of 2.3 percent, how much must yourgrandparents deposit today?Multiple Choicea. $5.217.391.30B. $4,347,826.09 C. $4,816,053.51D. $4,565,217.39E. $5.962.732.92Thirty years ago, your parents opened an investment account with a single deposit of $2,000. They never added any additional money to this account. Today, the account is worth $26,905. What average annual rate of return did they earn on their investment? 8.90 percent 8.96 percent 9.05 percent 9.12 percent 9.24 percentYour grandmother deposited $10,000 in an investment account on the day you were born to help pay the tuition when you go to college. If the account was worth $50,000 seventeen years after she made the deposit, what was the rate of return on the account?
- When your father was born 47 years ago, his grandparents deposited $175 in an account for him. Today, that accountis worth $1,900. What was the annual rate of return on this account?Multiple Choicea 3.89 percentB 5.73 percent C 5.00 percentD. 4.86 percentE. 5.21 percentWhen you were born, your grandfather established a trust fund for you in a bank. The account has been earning an annual interest of 11%. If this account will be worth 150,000 USD on your 20th birthday, how much did your grandfather deposit on the day you were born?Your grandmother left you an inheritance in the form of a trust. The trust agreement states that you are to receive R2 500 on the first day of each year, starting immediately and continuing for fifty years. What is the value of this inheritance today if the applicable discount rate is 6,20%? a. b. d. R66 811,30 R40 706,92 R39 942,42 R49 942,42
- Your sister just deposited $11,500 into an investment account. She believes that she will earn an annual return of 10 percent for the next 7 years. You believe that you will only be able to earn an annual return of 9.2 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 7 years? Multiple Choice O O $562.67 $602.86 $643.06 $416.79When you were born, your grandfather established a trust fund for you in the Cayman Islands The account has been eaming interest at the rate of 15% per year f this account will be worth $90,000 on your 23th birthday, how much did your grandfather deposit on the day you were born? Click the icon to view the interest and annuity table for discrete compounding when i 15% per year Choose the correct answer below. OA. $3,618 O B. $2.965 OC. $13,500 O D. $13,335 O E. $3,913 Click to select your answer.Your grandma invested some money 64 years ago into an account earning 4.91% per year, compounded quarterly. She now has $11804 in her account Round to the pekny. How much money did your grandam invest 64 years ago? $ a. b. How much interest did she earn on the investment? $
- You discover a savings account belonging to your great-grandmother. It has been earning 1¾% annually for 50 years. The balance is $35,712. How much money did your great-grandmother originally put in the account, to the nearest dollar? (Round your answer to the nearest whole dollar amount.)Your grandparents would like to establish a trust fund that will pay you and your heirs $185,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.6 percent, how much must your grandparents deposit today? Multiple Choice: $4,743,589.74 $4,282,407.41 $5,138,888.89 $4,496,527.78 $5,873,015.87Your grandfather left an inheritance for you of $100,000. However you can only drawdown on the investment as follows: Years 1 – 3 $15,000 each year Year 4 to 6 $10,000 each year Year 7 $25,000 Interest on the fund is 5%. a) What is the present worth of this inheritance?