Foundations of Finance (9th Edition) (Pearson Series in Finance)
9th Edition
ISBN: 9780134083285
Author: Arthur J. Keown, John D. Martin, J. William Petty
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 2SP
Summary Introduction
To determine: The number of years to be invested to get specific amount in the future
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
( Compound value solving for n) How many years will the following take?
Options:
a) $550 to grow to $1,049.50 if invested at 6 percent compounded annually
b)$37 to grow to $63.87 if invested at 9 percent compounded annually
c)$110 to grow to $398.60 if invested at 18 percent compounded annually
d)$56 to grow to $89.66 if invested at 3 percent compounded annually
How many years will the following take?
a. $500 to grow to $1,039.50 if it's invested at 5 percent compounded annually
b. $35 to grow to $53.87 if it's invested at 9 percent compounded annually
c. $100 to grow to $298.60 if it's invested at 20 percent compounded annually
d. $53 to grow to $78.76 if it's invested at 2 percent compounded annually
USE EXCEL TO WORK THIS OUT AND SHOW THE FORMULA!
At what annual rate would the following have to be invested?
a.
$490
to grow to
$963.90
in
10
years
b.
$280
to grow to
$557.92
in
8
years
c.
$52
to grow to
$419.24
in
20
years
d.
$212
to grow to
$268.25
in
6
years
a. At what annual rate would
$490
have to be invested to grow to
$963.90
in
10
years?
Chapter 5 Solutions
Foundations of Finance (9th Edition) (Pearson Series in Finance)
Ch. 5 - Prob. 1RQCh. 5 - The processes of discounting and compounding are...Ch. 5 - Prob. 3RQCh. 5 - Prob. 4RQCh. 5 - Prob. 5RQCh. 5 - Prob. 1SPCh. 5 - Prob. 2SPCh. 5 - Prob. 3SPCh. 5 - Prob. 4SPCh. 5 - (Compound value) Stanford Simmons, who recently...
Ch. 5 - (Future value) Sarah Wiggum would like to make a...Ch. 5 - Prob. 7SPCh. 5 - Prob. 8SPCh. 5 - Prob. 9SPCh. 5 - Prob. 10SPCh. 5 - Prob. 11SPCh. 5 - Prob. 13SPCh. 5 - Prob. 14SPCh. 5 - Prob. 15SPCh. 5 - Prob. 16SPCh. 5 - Prob. 17SPCh. 5 - Prob. 18SPCh. 5 - Prob. 19SPCh. 5 - Prob. 20SPCh. 5 - Prob. 21SPCh. 5 - Prob. 22SPCh. 5 - Prob. 23SPCh. 5 - (Solving for PMT of an annuity) To pay for your...Ch. 5 - Prob. 25SPCh. 5 - Prob. 26SPCh. 5 - (Loan amortization) On December 31, Beth Klemkosky...Ch. 5 - (Solving for r of an annuity) You lend a friend...Ch. 5 - Prob. 29SPCh. 5 - (Compound annuity) You plan on buying some...Ch. 5 - (Loan amortization) On December 31, Son-Nan Chen...Ch. 5 - (Loan amortization) To buy a new house you must...Ch. 5 - Prob. 33SPCh. 5 - Prob. 34SPCh. 5 - Prob. 35SPCh. 5 - Prob. 36SPCh. 5 - Prob. 37SPCh. 5 - (Compound interest uith nonannnal periods) a....Ch. 5 - (Compound interest with nonannual periods) After...Ch. 5 - Prob. 40SPCh. 5 - (Spreadsheet problem) To buy a new house you take...Ch. 5 - (Nonannual compounding using a calculator) Jesse...Ch. 5 - (Nonannual compounding using a calculator)...Ch. 5 - (Nonannual compounding using a calculator) Fords...Ch. 5 - Prob. 45SPCh. 5 - (Nonannual compounding using a calculator) Dennis...Ch. 5 - Prob. 47SPCh. 5 - (Calculating the effective annual rate) Youve just...Ch. 5 - Prob. 49SPCh. 5 - Prob. 50SPCh. 5 - (Present value) The Kumar Corporation is planning...Ch. 5 - (Perpetuities) What is the present value of the...Ch. 5 - (Complex present value) How much do you have to...Ch. 5 - (Complex present value) You would like to have...Ch. 5 - Prob. 55SPCh. 5 - Prob. 56SPCh. 5 - Prob. 57SPCh. 5 - Prob. 58SPCh. 5 - (Present value of a complex stream) Don Draper has...Ch. 5 - (Present value of a complex stream) Don Draper has...Ch. 5 - (Complex stream of cash flows) Roger Sterling has...Ch. 5 - (Future and present value using a calculator) In...Ch. 5 - Prob. 1MCCh. 5 - Prob. 2MCCh. 5 - Prob. 3MCCh. 5 - Prob. 4MCCh. 5 - Prob. 5MCCh. 5 - Prob. 6MCCh. 5 - Prob. 7MCCh. 5 - Prob. 8MCCh. 5 - Prob. 9MCCh. 5 - Prob. 10MCCh. 5 - Prob. 11MC
Knowledge Booster
Similar questions
- Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)arrow_forwardAn investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second year. What is the payback period? a. 1.67 years b. 0.50 year c. 2.00 years d. 1.20 years e. Cannot be determinedarrow_forwardIf 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%arrow_forward
- (Solving for n) How many years will it take for $510 to grow to $1,099.69 if it's invested at 8 percent compounded annually? Question content area bottom Part 1 The number of years it will take for $510 to grow to $1,099.69 at 8 percent compounded annually is enter your response here years. (Round to one decimal place.)arrow_forward( Compound value solving for r ) At what annual rate would the following have to be invested? Options: a.$820 to grow to $1,988.12 in 13 years b.$320 to grow to$423.10 in 6 years c.$57 to grow to$290.30 in 18 years d.$230 to grow to $576.60 in 5 yearsarrow_forwardCi What will $5,000 invested for 10 years at 8 percent compounded annually grow to? ii How many years will it take $400 to grow to $1,671 if 10 percent compounded annually? iii At what rate would $1,000 have to be invested to grow to $4,046 in 10 vears? it is invested at in hunk forarrow_forward
- Please show work thank you 1.Compute the geometric mean (return) and the final balance after 5 years on a $1,500 investment using the following information: Year 1 2 3 4 5 Return 30% 5% -20% 10% 15% part 2 What is the average rate of return for this investment over the 5 years (convert to % and round to 3 decimal places - example 12.063%) (geometric mean)? part 3 If you invested $1,500 at the beginning, how much would your investment be worth after 5 years (round to the nearest penny (example - $1,607.45)?arrow_forwardWhen an initial amount of P dollars is invested at r% annual interest compounded n times per year, the value of the account (4) after years is given by the equation nt A=P(1 + =)** n Write an equation that represents the value in an account that starts out with an initial investment of $5000 and pays 10% interest compound monthly. Then use that equation to fill the table and use the table to graph the equation. Years (1) Value (4) 0 5 10 15 20 oo → KIarrow_forwardWhat is the simple payback period (in years) for an investment of $465,000 if the net annual income is $75,000? O a.7 O b.8 O c. 5 O d. 9 O e. 6arrow_forward
- 1. Determine the total amount if P11,500,000 is invested in 2 years, 5 months with interest rate of 13 1/2 %? 2. What is the future value of P33,000,000 in 1 1/4 years with interest rate of 8 1/4 %? 3. How much would be the accumulated amount if P2, 047, 000 is invested in 2 years, 2 months with interest rate of 10 ¾4%? 4. An investor put his money in an investment earning 10 1/2% simple interest rate per annum. If his total investment was P12.30 million, how much money he will receive at the end of 15 months? 5. Fernando invested his P1.57 million for three and half years in an investment having a simple interest of 16%. How much money he will collect after the term?arrow_forwardWhat annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Annual rate of return %arrow_forwardAn investment of $185,575 is expected to generate returns of $65,000 per year for each of the next 4 years. Following is a table for the present value of $1 at compound interest: Year 1 2 3 4 12% 0.943 0.909 0.893 0.870 0.890 0.826 0.797 0.756 0.840 0.751 0.712 0.658 0.792 0.683 0.636 0.572 0.747 0.621 0.567 0.497 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 15% 1 0.943 0.909 0.893 0.870 2 1.833 1.736 1.690 1.626 3 2.673 2.487 2.402 2.283 4 3.465 3.170 3.037 2.855 4.212 3.791 3.605 3.353 5 5 6% 10% % 15% What is the investment's internal rate of return?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Essentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Essentials of Business Analytics (MindTap Course ...
Statistics
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College