Question

Henry invested $7,500 exactly 2 years ago. In exactly 4 years from now, he expects his investment to be worth $13,900. If he is correct, what would his compounded average annual growth rate be?

Answer #1

Total period of investment is 6 years.

Using calculator:

Calculator | |

Inputs: | |

PV | (7,500.000) |

PMT | - |

FV | 13,900.00 |

N | 6 |

Output: | |

I/Y = IRR | 10.830406% |

Answer is:

10.830406%

Please rate.

Two years ago, Tim invested $13900. In four years from today. he
expects to have $25100. If Deshaun expects to earn the same annual
return after four years from today as the annual rate implued from
the past and expected alues given in the problem, then in how many
years from today does he expect to have exactly $34700?

1 year(s) ago, Mack invested 6,490 dollars. In 1 year(s) from
today, he expects to have 8,680 dollars. If Mack expects to earn
the same annual return after 1 year(s) from today as the annual
rate implied from the past and expected values given in the
problem, then how much does Mack expect to have in 6 years from
today?
3 year(s) ago, Carl had 248,400 dollars in his account. In 5
year(s), he expects to have 456,200 dollars. If...

Four years ago, Saul invested $500. Three years ago, Trek
invested $600. Today, these two investments are each worth $800.
Assume each account continues to earn its respective rate of
return. Which one of the following statements is correct concerning
these investments? Please show your
reasonings.
A) Three years from today, Trek's investment will be worth more
than Saul's.
B) One year ago, Saul's investment was worth less than Trek's
investment.
C) Trek earns a higher rate of return than...

SHOW ALL WORK
Ten years ago, Bruce invested $1,250. Today, the investment is
worth $3,550. If interest is compounded annually, what annual rate
of return did Bruce earn on his investment?

Three years ago, Mr. Yu had $140,000 in his account. In 15 years
from today, he expects to have $400,000. If he expects to earn the
same return each year from 3 years ago to 15 years from today, then
how much does he expect to have in 2 years from today if his
interest is compounded monthly?

4) Henry Bryant invests $37,000 at 6% annual
interest, leaving the money invested without withdrawing any of the
interest for 6 years. At the end of the 6 years, Henry withdraws
the accumulated amount of money.
a) Compute the amount Henry would withdraw assuming
the investment earns simple interest.
b) Compute the amount Henry would withdraw assuming
the investment earns interest compounded annually.
c) Compute the amount Henry would withdraw assuming
the investment earns interest compounded
semiannually.

Twins Jane and Hal each inherited $150,000 exactly ten years
ago. Jane invested the entire amount in a brokerage account to fund
her retirement. Her account has been earning 8% per year since she
invested it, and she expects it to earn 5% per year for the next 20
years. Hal spent all of his inheritance and has not saved anything
for retirement. Assume there are no taxes.
a. How much is Jane expected to have in her account at...

3 year(s) ago, Mack invested 5,930 dollars. In 1 year(s) from
today, he expects to have 8,000 dollars. If Mack expects to earn
the same annual return after 1 year(s) from today as the annual
rate implied from the past and expected values given in the
problem, then how much does Mack expect to have in 6 years from
today?

1 year(s) ago, Fatima invested 5,420 dollars. In 2 year(s) from
today, she expects to have 7,960 dollars. If Fatima expects to earn
the same annual return after 2 year(s) from today as the annual
rate implied from the past and expected values given in the
problem, then in how many years from today does she expect to have
exactly 12,460 dollars? Round your answer to 2 decimal places (for
example, 2.89, 14.70, or 6.00).

Karen made an investment of $2500 two years ago to go on a trip.
She invested the money at 7.2% per annum compounded semi-annually.
Her investment will mature in three years. Dwayne would also like
to go on the trip. However, he hasn’t started saving yet. How much
must he invest today at 9.6% per annum compounded monthly to have
the same amount as Karen will have three years from now?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 15 minutes ago

asked 15 minutes ago

asked 31 minutes ago

asked 33 minutes ago

asked 39 minutes ago

asked 39 minutes ago

asked 45 minutes ago

asked 46 minutes ago

asked 53 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago