John and Elizabeth evaluate three telecommunication companies to determine the best company to invest in. A horizontal analysis
1 answer:
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Answer and Explanation:
The computation is shown below:
a. For computing the number of money required at the end of four years first we need to find out the present value i.e to be shown in the attachment
Given that,
Future value = $0
Rate of interest = 7%
NPER = 4 years
PMT = $10,000
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after applying this, the present value is $33,872.11
Now the net nest egg is
= $120,000 - $33,000 - $33,872.11
= $53,127.89
Now the future value is
= Present value × (1 + interest rate)^number of years
= $53,127.89 × (1 + 0.07)^4
= $69,639.83
b. Now to find out the number of years required to stay in school we need to use the NPER formula i.e be to shown in the attachment
Given that,
Present value = $69,639.83
Future value = $0
Rate of interest = 7%
PMT = $24,060
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after applying this, the answer would be 3.35 years
Answer:
0.0642 or 6.42%
Explanation:
The period 't' between the year when the coin was issued, 1794, and 1971 is:
If the coin had a value of $5 and after a period of t=177 years it was worth $305,000, the annual tax rate by which the coin appreciated is determined by:
The annual rate was 0.0642 or 6.42%.