Assume you invest $2000 on February 1, 1993, $2000 on February 1, 1994, $2000 on February...

Assume you invest $2000 on February 1, 1993, $2000 on February 1, 1994, $2000 on February 1, 1995, $2000 on February 1, 1996, $2000 on February 1, 1997, $2000 on February 1, 1998, $0 on February 1, 1999, $0 on February 1, 2000, $0 on February 1, 2001, $0 on February 1, 2002, and $0 on February 1, 2003. What is the value of those investments on February 1, 2003? Assume that any money that is invested will earn an interest rate of 10%, compounded annually.

a. 15,431

b. 22,593

c. 37,062

d. 24,852

e. 49,045

Expert Solution

d. 24,852

The final amount = Amount invested*(1+10%)^(Years for which amount invested)

Since, February 1 is the reference for all the investments, we can directly take years in between

Hence, the total amount of February 1, 2003 = $24,852

jeff jeffy answered 1 year ago

Terry Company’s 1994 income statement and comparative balance sheets at December 31, 1994 and 1993, are...

Terry Company’s 1994 income statement and comparative balance sheets at December 31, 1994 and 1993, are as follows (SHOW YOUR WORK WITH THE ACCOUNTING TITLES): Terry Company Income Statement For the Year Ended December 31, 1994 Sales $876,000 Dividend Income 5,000 $881,000 Cost of Goods Sold $486,000 Wages Expense 92,000 Advertising Expense 10,000 Depreciation Expense 22,000 Income Tax Expense 27,000 Loss on Sale of Investments 2,000 639,000 $242,000 Terry Company Balance Sheet Assets ...

Balance Sheet Problem 1992 1993 1994 Annual Sales Growth (over prior yr) + 1% 0% +1%...

Balance Sheet Problem 1992 1993 1994 Annual Sales Growth (over prior yr) + 1% 0% +1% Current Ratio 3.5X 2X 1.2X Average Collection Period 25 days 30 days 55 days What is happening to liquidity? What are some follow-up questions you would ask?

You invest $2000 in stock A and $2000 in stock B. The two stocks have betas...

You invest $2000 in stock A and $2000 in stock B. The two stocks have betas of 1.2 and 1.4. What is the beta of the portfolio? A. .95 B. 1.01 C. 1.20 D. 1.30 E. 1.40

Assume that you are going to invest $140,000 in a two asset portfolio. You will invest...

Assume that you are going to invest $140,000 in a two asset portfolio. You will invest $100,000 in the fully diversified market portfolio and the remainder of your funds will be invested in the riskless security. Assume the market risk premium is 8% and the riskless return is 4%. Compute the expected return on this portfolio. Respond in percentage form without the percent sign and round to the second decimal place.

Imagine you have $2000 to invest. There are two companies' stocks that are available. Stock A...

Imagine you have $2000 to invest. There are two companies' stocks that are available. Stock A is currently selling for $50 and will either go up to $75 or down to $40. Stock B is currently selling for $100 and will either go up to $130 or down to $80. Consider the following strategies f. Short sell $1000 of corporation A and put all $3000 in corporation B. What are your possible payoffs? What are your possible returns?

Year Sales Net Income After Tax 1992 $2,000,000 $240,000 1993 2,750,000 338,000 1994 3,200,000 384,000 1995...

Year Sales Net Income After Tax 1992 $2,000,000 $240,000 1993 2,750,000 338,000 1994 3,200,000 384,000 1995 5,000,000 575,000 1996 5,7000,000 600,000 1997 6,2000,000 713,000 1998 7,3000,000 803,000 1999 8,5000,000 860,000 2000 9,1000,000 900,000 2001 10,3000,000 912,720 What is the compound rate of growth for the firm's sales and net income after-tax?

How much will you accumulate if you invest $2000 per year into a retirement plan (e.g.,...

How much will you accumulate if you invest $2000 per year into a retirement plan (e.g., Roth IRA) for 40 years if you can earn an annualized rate of 9.00%? (Round answer to nearest whole number) options: $62819. $670431. $22176. Place the following Automated Clearing House or hybrid process steps in order: I. Sign check. II. Record check information with device. III. Deduct payment after bank receives information. IV. Merchant system sends check data to ACH operator. $675765.

Assume you have $20,000 to invest in the stock market. Which company would you invest in,...

Assume you have $20,000 to invest in the stock market. Which company would you invest in, Starbucks or Dunkin Donuts? Give supporting calculations to back up your decision.

1. Assume you have AUD 100,000 that you must invest in a stock on 2nd January...

1. Assume you have AUD 100,000 that you must invest in a stock on 2nd January 2020. Select a stock from the data provided to invest. Justify your selection. (5 points) Data: daily stock price, beta and some fundamental indicators (EPS, DPS, D/E Ratio) Assessment criteria: o Basis and reasons for selecting the stock based on fundamental analyses. Qualitative analyses will be considered provided the arguments are rigorous and convincing. o Full details of investment in a table format with...

You plan to invest Rs. 2000 in a fixed deposit today that pays a stated annual...

You plan to invest Rs. 2000 in a fixed deposit today that pays a stated annual interest rate of 8 percent which is expected to apply to all future years. a) How much will you have in the account at the end of 10 years if interest is compounded as follows i) Annually ii) Semiannually iii)Monthly b) What is the effective annual rate (EAR) for each compounding frequency in part a ?

Question