Question

Construct a cash flow diagram that represents the amount of money that will be accumulated in...

Construct a cash flow diagram that represents the amount of money that will be accumulated in 7 years from an initial investment of $20,000 now and $3,500 per year for 7 years at an interest rate of 8% per year. And calculate what the final amount after the 7 years will be.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Please see the screenshot for the solution:

The final amount after the 7 years will be $65,506.30

Screenshot with formulas

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Construct a cash flow diagram that represents the amount of money that will be accumulate in...
Construct a cash flow diagram that represents the amount of money that will be accumulate in 7 years from the initial investment of $20,000 now and $3,500 per year for 7 years at an interest rate of 8% per year.
Show cash flow diagram if applicable. A company that manufactures regenerative thermal oxidizers made an investment...
Show cash flow diagram if applicable. A company that manufactures regenerative thermal oxidizers made an investment 10 years ago that is now worth $1,300,000. Calculate the amount of the initial investment (P) if the interest rate was: a) 15% per year simple interest b) 15% per year compound interest
PLEASE DRAW A CASH FLOW DIAGRAM AND THEN ANSWER! If there is no diagram = Thumbs...
PLEASE DRAW A CASH FLOW DIAGRAM AND THEN ANSWER! If there is no diagram = Thumbs down!!!!! A corporate bond has a value of $10,000, a bond interest rate of 8% per year payable semiannually, and a maturity date of 20 years from now. If a person purchases the bond for $9,000 when the interest rate in the market place is 8% per year compounded semiannually, the size and frequency of the interest payments the person will receive are?
The function f(x)=900 represents the rate of flow of money in dollars per year. Assume a...
The function f(x)=900 represents the rate of flow of money in dollars per year. Assume a 5 - year period at 5% compounded continuously. Find (A) the present value, and (B) the accumulated amount of money flow at t=5
The function F(X)= 700e^0.03x represents the rate of flow of money in dollars per year. Assume...
The function F(X)= 700e^0.03x represents the rate of flow of money in dollars per year. Assume a 10 year period at 5 percent compounded continuously. A. Find the present value B. the accumulated amount of money flow at t=10?
How much money would be accumulated 18 years from now from deposits of $15,000 per year...
How much money would be accumulated 18 years from now from deposits of $15,000 per year for five consecutive years, starting 3 years from now, if the interest rate is 8% per year?
Consider an investment of $30,000 that is deposited in year 0 and the amount invested increases...
Consider an investment of $30,000 that is deposited in year 0 and the amount invested increases by 10% per year through year 8 at an interest rate of 10% per year. Draw a cash flow diagram and label it with all cash flows from year 0 to year 8. Calculate the future value of this investment at the end of year 8.
Determine the present worth and the accumulated amount of the annuity consisting of 8 payments of...
Determine the present worth and the accumulated amount of the annuity consisting of 8 payments of $12500 each the payments are made at the beginning of each year. Money is worth 15% compounded quarterly. *CASH FLOW Diagram Needed
8.6343 Q13 Determine the amount of money that will be accumulated in an account that pays...
8.6343 Q13 Determine the amount of money that will be accumulated in an account that pays compound​ interest, given the initial principal of ​$28 comma 800 invested at 2.81​% annual interest for 7 years compounded ​ (a) daily ​(n=365); ​= (b) continuously. = (Round to the nearest cent as​ needed.)
Two projects have the estimated details as shown in Table 2.2. Construct cash flow diagrams for...
Two projects have the estimated details as shown in Table 2.2. Construct cash flow diagrams for the two projects and use present worth (PW) analysis to determine which project should be selected at the rate of 12% per year Table 2.2: Details for Project R and Project S Project R Project S Initial cost (RM) 30,000 20,000 Annual cost (RM) 7,000 for first year, increasing by 1,000 per year for subsequent years 0 for the first 3 year, 5,000 from...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT