What was lance? murdock rate of? return

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1. (Solving for n?) How many years will it take for ?$510 to grow to ?$1 comma 065.01 if? it's invested at 10 percent compounded? annually?

2. (Present value) Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of ?$395 comma 000 due in 26 years. In other? words, they will need ?$395 comma 000 in 26 years. Toni? Flanders, the? company's CEO, is scrambling to discount the liability to the present to assist in valuing the? firm's stock. If the appropriate discount rate is 8 ?percent, what is the present value of the? liability?

3. Lance Murdock purchased a wooden statue of a Conquistador for $ 7 comma 900 to put in his home office 6 years ago. Lance has recently? married, and his home office is being converted into a sewing room. His new? wife, who has far better taste than? Lance, thinks the Conquistador is hideous and must go immediately. Lance decided to sell it on? e-Bay and only received ?$5 comma 500 for? it, and so he took a loss on the investment. What was his rate of? return, that? is, the value of i??

What was Lance? Murdock's rate of? return, that? is, the value of i?? Enter a negative percentage for a loss.

4. You are offered ?$120 comma 000 today or ?$360 comma 000 in 13 years. Assuming that you can earn 13 percent on your? money, which should you? choose?

If you are offered ?$360000 in 13 years and you can earn 13 percent on your? money, what is the present value of ?$360000??

5. (Calculating an? EAR) Your grandmother asks for your help in choosing a certificate of deposit? (CD) from a bank with a? one-year maturity and a fixed interest rate. The first certificate of? deposit, CD? #1, pays 4.95 percent APR compounded monthly?, while the second certificate of? deposit, CD? #2, pays 5.00 percent APR compounded quarterly. What is the effective annual rate? (the EAR) of each? CD, and which CD do you recommend to your? grandmother?

If the first certificate of? deposit, CD? #1, pays 4.95 percent APR compounded monthly?, the EAR for the deposit is

Reference no: EM132354569

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