How many years would parker have had to wait

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Reference no: EM133115916

Questions -

A) Parker has a rare sculpture that is supposed to be worth $10,000 sometime in the future. Parker was just offered $4,500 for the sculpture today (PV). Based on an interest rate (discount rate) of 11.5% per year, how many years would Parker have had to wait to get the $10,000 value in the future?

a. 6.28 years

b. 7.34 years (negative)

c. 6.28 years (negative)

d. 7.34 years

B) Cooper has an antique painting that he hopes to sell for $12,000 in the future (FV). He was just offered $6,000 for the painting (PV). At a discount rate of 12% with monthly compounding, how many years would Cooper have to wait if he wanted to sell for the $12,000?

a. 5.81 years

b. 73.40 years

c. 69.66 years

d. 6.12 years

C) A FV of $950,000 is worth a PV of $50,000 today. Assuming a rate of return of 8.5% per year, how many years were involved in the calculation (NPER) of the PV?

a. 37.00 years

b. No solution or error

c. 36.09 years

d. 36.09 years (negative)

D) Brandon has $3,800 that he wants to invest today to grow into $16,000. He finds an investment that earns 9.5% with monthly compounds. How many months will he wait till he has the $16,000?

a. 190.09 months

b. 15.84 months

c. 182.31 months

d. 15.19 months

Reference no: EM133115916

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