Reference no: EM132348796
Question
1. At a growth (interest) rate of 6 percent annually, how long will it take for a sum to double? To triple? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Time needed to double____years
Time needed to triple_____years
2. Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). However, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due).
What is the future value of a 13-year annuity of $2,800 per period where payments come at the beginning of each period? The interest rate is 9 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Future value____
3. Franklin Templeton has just invested $9,760 for his son (age one). This money will be used for his son's education 19 years from now. He calculates that he will need $35,235 by the time the boy goes to school.
What rate of return will Mr. Templeton need in order to achieve this goal? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Rate of return_____%
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What is the incremental savings of buying the valves
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Present value of all three future benefits
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How long will it take for a sum to double
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Market return remained unchanged
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What is the value of the stock
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Calculate the net present value
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