Question

In: Finance

Kirk Van​ Houten, who has been married for 21 ​years, would like to buy his wife...

Kirk Van​ Houten, who has been married for 21 ​years, would like to buy his wife an expensive diamond ring with a platinum setting on their​ 30-year wedding anniversary. Assume that the cost of the ring will be ​$10,500 in 9 years. Kirk currently has ​$4,433 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the​ ring?

The annual rate of return Kirk must earn on his investment to accumulate enough money to pay for the ring is __

Solutions

Expert Solution

Calculating Annual rate of Return,

10,500 = 4,433(1 + r)⁹

r = 10.06%

Annual Rate of Return = 10.06%

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Clifford Allen is a 64-year-old male who has been married to his wife, Pam, for 40...
Clifford Allen is a 64-year-old male who has been married to his wife, Pam, for 40 years. They live with their 24-year-old son, Gary, who was born with Down syndrome. Mr. Allen is a middle manager for a small manufacturing company where he has worked for the last 20 years. Overall, Mr. Allen is in good health, although he has been undergoing treatment recently for BPH. He has a history of depression for which he does not seek treatment because...
Clifford Allen is a 64-year-old male who has been married to his wife, Pam, for 40...
Clifford Allen is a 64-year-old male who has been married to his wife, Pam, for 40 years. They live with their 24-year-old son, Gary, who was born with Down syndrome. Mr. Allen is a middle manager for a small manufacturing company where he has worked for the last 20 years. Overall, Mr. Allen is in good health, although he has been undergoing treatment recently for BPH. He has a history of depression for which he does not seek treatment because...
James and his wife would like to retire in 23 years. Upon retirement they want to...
James and his wife would like to retire in 23 years. Upon retirement they want to spend the first 10 years traveling around the world. To travel in the style they are accustomed they will require $65,000 in each of the 10 years. Their first payment of $65,000 will be 23 years from today and there will be 10 total yearly payments of $65,000. After the years of traveling they then want to live in a small retirement village in...
James and his wife would like to retire in 23 years. Upon retirement they want to...
James and his wife would like to retire in 23 years. Upon retirement they want to spend the first 10 years traveling around the world. To travel in the style they are accustomed they will require $65,000 in each of the 10 years. Their first payment of $65,000 will be 23 years from today and there will be 10 total yearly payments of $65,000. After the years of traveling they then want to live in a small retirement village in...
How do you discuss to a married patient who is with his wife if he is diagnosed with gonorrhea?
How do you discuss to a married patient who is with his wife if he is diagnosed with gonorrhea?
My son has been living in Brazil for the past 8 years. He and his wife...
My son has been living in Brazil for the past 8 years. He and his wife are going to move back this year. Assume that they have to bring in 10,000 Brazilian Reals. What would be exchange rate for that on March 1 of this year? How much would they end up with in $US? (You will have to find a historical exchange rate on the Web and do the calculation. Please include the site you used in your answer.)...
Calvin Albright is 69 years old and married. He and his wife, Betty, are both U.S....
Calvin Albright is 69 years old and married. He and his wife, Betty, are both U.S. citizens with valid Social Security numbers. Calvin retired in 2015. He received $7,000 in Social Security payments in 2017. Betty, who is 60 years old, was unemployed for four months of 2017, but started a new job and received full health insurance coverage from her employer for the remaining 8 months. Betty received unemployment compensation and wages totaling $30,000 for 2017. Betty did not...
An 80-year-old man has been a heavy smoker for 60 years. His wife died few years...
An 80-year-old man has been a heavy smoker for 60 years. His wife died few years ago and he had been sitting at home afterwards. He said he was too tired and used to taking care of his wife. The sons and daughters persuaded him to go out for a walk as he had been sitting in chairs for years and he refused to go out for a walk. When he talked, he mixed up some languages. For example, he...
Captain Kirk of the Starship Enterprise has been told by his superiors that only a chemist...
Captain Kirk of the Starship Enterprise has been told by his superiors that only a chemist can be trusted with the combination of the safe containing the dilithium crystals that power the ship. The combination is the pH of solution A, described below followed by the pH of solution C. The chemist must determine the combination using only the information below (all solutions are at 25C). Solution A is 150.0 mL of a 0.150 M solution of the weak monoprotic...
1. Financial institutions in the U.S. economy Suppose Van would like to invest $9,000 of his...
1. Financial institutions in the U.S. economy Suppose Van would like to invest $9,000 of his savings. One way of investing is to purchase stock or bonds from a private company. Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab—a practice known as____finance. Buying a bond issued by NanoSpeck would give Van____the firm. In the event that NanoSpeck runs into financial difficulty,____will be paid first. Suppose instead Van decides to buy 100 shares of...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT