Miller's Hardware plans on saving $40,000, $50,000, and $58,000 at the end of each year for the next three years, respectively. How much will the firm have saved at the end of the three years if it can earn 6% by reinvesting its saving? a. $155,944.00 b. $169,004.13 c. $148,000.00 d. $148,078.15
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8Miller's Hardware plans on saving $40,000, $50,000, and $58,000 at the end of each year for the next three years, respectively. How much will the firm have saved at the end of the three years if it can earn 6% by reinvesting its saving? a. $155,944.00 b. $169,004.13 c. $148,000.00 d. $148,078.15
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- 14 A company estimates that it will need $66,000 in 10 years to replace a computer. If it establishes a sinking fund by making fixed monthly payments into an account paying 5.4% compounded monthly, how much should each payment be? The amount of each payment should be $ (Round to the nearest cent.)Tricorp Company is considering an investment that is expected to return $320,000 after four years. If Tricorp demands a 15% return, what is the most that it will be willing to pay for this investment? 15%, 4 years annually Factor Present value of a $1 0.572 Future value of $11.749 Present value of an annuity 2.855 Future value of an annuity 4.993 a. $320,000 b. $177,696 c. $183,040 d. $45,216 e. $278,272Suppose you earned a $595,000 bonus this year and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years? Select the correct answer. a. $61,742.55 b. $61,751.25 c. $61,733.85 d. $61,716.45 e. $61,725.15
- QUESTION 3 Solve the followings. A. Lincoln Benefit Life offers an annuity at 5.5%/year of interest rate, compounded monthly (in the beginning of each month). How much should be made to this financial product every month in order to have $85,000 in 6 years? B. A company establishes a sinking fund for plant retooling in 8 years at an estimated cost of $620,000. How much should be invested every 3 months into an account with 8.25%/ year of interest rate, which compounded quarterly? How much interest will the account earn in the 8 years?suppose you make 2 annual $10,000 payments, the first one starting at the beginning of year 5 (end of year 4). To accumulate the money to make these payments, you want to make 4 equal payments into an investment account, the first to be made one year from today. Assuming a 10% rate of return, what is the amount of these 4 investment payments? a. 4110 b. 4114 c. 4118 d. 4122 Please show your work!12. You plan to invest $40,000 at the end of each of the next 25 years. If the investment account pays 5% annual interest (compounded annually), what is the investment worth at the end of 25 years? Group of answer choices $1,909,083.95 $1,190,908.40 $1,000,000 $1,060,000
- K You have the choice of receiving $100,000 now or $43,000 now and another $70,000 three years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 6.5% compounded annually Which choice is better? A. They are equal in value. B. The choice of $43,000 now and $70,000 in three years is better. OC. The choice of $100,000 now is better. The better choice is greater than the alternative choice by $ in terms of today's dollar (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) 0 nYou are thinking about purchasing an investment from Get-Rich-Quick Investmemnt company. If you buy the investment, you will receive $50 every month for five(5)years. Payment will be made at the end of each month. If your required rate of return is 9% how much should you be willing to pay for this investment? Group of answer choices $4,632.87 $2,735.25 $2,525.10 $2,408.67An investment product promises to pay $25,458 at the end of nine years. If an investor feels this investment should produce a rate of return of 14 percent, compounded annually, what’s the most the investor should be willing to pay for the investment? a. $6,866 b. $7,828 c. $8,926 d. $9,426
- 10. . You start to save for a major purchase. You can invest GH¢320 every three months for 3 years and 9 months. You are able to earn 5.34% compounded semi- annually. What is the amount of interest that you earn during the entire term? * c. GH¢472.26 a. GH¢468.54 d. GH¢2506.00 b. GH¢5272.26 11. How much interest will be earned on GH¢5,000 deposited today that will earn a 4% compounded quarterly and will be invested for 6 years? * a. GH¢1,326.60 b. GH¢6,326.60 d. GH¢1,348.67 c. GH¢6,348.67What rate of return would you need if you wanted to accumulate $1,000,000 in 25 years and invest $10,000 per year? O A. 10.11% B. 9% O C. 34.7% O D. 8.4% ......14. VALUE OFA BUSINESS John Fernandez figures his bike shop is worth $88,000 if sold today and that it will grow in value at 8% per year compounded annually for the next 6 years. If he sells the business, the funds will be invested at 5% compounded semiannually. (a) Find the future value of the shop. (b) What price should he insist on at this time if he sells the business?
