Your father invested a lump sum 20 years ago at 10% interest for your education. Today,...

Your father invested a lump sum 20 years ago at 10% interest for your education. Today, that account worth $100,000.00. How much did your father deposit 20 years ago?
A. $14,329.72
B. $14,517.19
C. $13,945.11
D. $14,864.36

Expert Solution

PV = FV / (1 + r)^t

PV = $100,000.00 / (1 + 0.10)^20

PV = $14,864.36

jeff jeffy answered 2 years ago

Your father invested a lump sum 35 years ago at 6.75 percent interest compounded monthly. Today,...

Your father invested a lump sum 35 years ago at 6.75 percent interest compounded monthly. Today, he gave you the proceeds of that investment which totalled OMR 77,223. How much did your father originally invest?

Your grandmother invested one lump sum 20 years ago at 4 percent interest. Today, she gave...

Your grandmother invested one lump sum 20 years ago at 4 percent interest. Today, she gave you the proceeds of that investment which totaled $6,539.87. How much did your grandmother originally invest? a. $2,750.00 b. $2,984.71 c. $2,531.36 d. $3,785.00

What lump sum deposited today at 12% compounded quarterly for 10 years will yield the same...

What lump sum deposited today at 12% compounded quarterly for 10 years will yield the same final amount as deposits of $3000 at the end of each 6-month period for 10 years at 10% compounded semiannually? The value of the lump sum is $___

4 years ago , Paul invested $1500. Three years ago, Trek invested $1600. Today, these two...

4 years ago , Paul invested $1500. Three years ago, Trek invested $1600. Today, these two investments are each worth $1800. Assume each account continues to earn its respective rate of return. (1) What is annual interest rate that Saul earned? (2) What is annual interest rate that Trek earned？ (3) Was Trek’s investment worth less than Saul one year ago?

Four years ago, Paul invested $1500. Three years ago, Trek invested $1600. Today, these two investments...

Four years ago, Paul invested $1500. Three years ago, Trek invested $1600. Today, these two investments are each worth $1800. Assume each account continues to earn its respective rate of return. (1) What is annual interest rate that Saul earned? (2) What is annual interest rate that Trek earned？ (3) Was Trek’s investment worth less than Saul one year ago?

What is the present value of a lump sum, $240,000 in 6 years if the interest...

What is the present value of a lump sum, $240,000 in 6 years if the interest rate (discount rate) is 11.4 percent annually? (Round your answer to 2 decimal places. (e.g., 123,345.16)) Your answer:

You invested money in a savings account paying 10% interest seven years ago.

You invested money in a savings account paying 10% interest seven years ago. The account is now worth $5,527.50. How much did you invest?

Ten years ago, you invested $2,000. Today it is worth $5,000. What rate of interest did...

Ten years ago, you invested $2,000. Today it is worth $5,000. What rate of interest did you earn? A. 9.60 percent B. 9.97 percent C. 9.03 percent D. 9.18 percent

A U.S. Treasury bond will pay a lump sum of $1,000 exactly 3 years from today....

A U.S. Treasury bond will pay a lump sum of $1,000 exactly 3 years from today. The nominal interest rate is 6%, semiannual compounding. Which of the following statements is CORRECT? a. The present value would be greater if the lump sum were discounted back for more periods. b. The PV of the $1,000 lump sum has a smaller present value than the PV of a 3-year, $333.33 ordinary annuity. c. The present value of the $1,000 would be larger...

one year ago you invested $5000. today your investment is worth $6178.40. What rate of interest...

one year ago you invested $5000. today your investment is worth $6178.40. What rate of interest did you earn?

Question