Chapter 4: Q5BP-c (page 282)
If you invest $9,000 today, how much will you have c. In 25 years at 14 percent?
The future value is $238,157.24.
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Your father offers you a choice of \(105,000 in 12 years or \)47,000 today. b. If money is still discounted at 8 percent, but your choice is between \(105,000 in 9 years or \)47,000 today, which should you choose?
At a growth (interest) rate of 10 percent annually, how long will it take for a sum to double? To triple? Select the year that is closest to the correct answer
Rita Gonzales won the \(41 million lottery. She is to receive \)1.5 million a year for the next 19 years plus an additional lump sum payment of $12.5 million after 19 years. The discount rate is 14 percent. What is the current value of her winnings?
Question:A firm pays a \(4.80 dividend at the end of year one (D1), has a stock price of \)80, and a constant growth rate (g) of 5 percent. Compute the required rate of return (Ke).
If you invest $8,500 per period for the following number of periods, how much would you have? a. 12 years at 10 percent.
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