Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 9, Problem 19P
Summary Introduction
To calculate:The worth of $25,000 invested in a mint condition 1952 Mickey Mantle Topps baseball card after 10 years at an interest rate of 12%.
Introduction:
The value of an investment or an asset in a future time period is termed as future value. It is calculated by multiplying the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Al Rosen invests $25,000 in a mint condition 1952 Mickey Mantle Topps baseball card. He expects the card to increase in value 12 percent per year for the next 10 years.
How much will his card be worth after 10 years? Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Sandra thinks Hockey Cards are a good investment, so she spends $32,000 on a mint condition 1942 Maurice Richard card. She expects the card to increase in value 10 percent per year for the next 15 years. How much will her card be worth after 15 years
When Aroon was a small child, his grandfather established a trust fund for him to receive $20,000 on his 35th birthday.
Aroon just turned 23. What is the value of his trust today if the trust fund earns 5 percent interest? If he had to wait until
age 40 to receive the money, what is the present value today of the $20,000 to be received in 17 years?
Click the following table icon to view the PVIF table:
The present value, PV, of his trust today if the trust fund earns 5 percent interest is $
A
LO
a
863367
(Round to the nearest cent.)
Chapter 9 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
Ch. 9 - Prob. 1DQCh. 9 - How is the present value of a single sum related...Ch. 9 - Prob. 3DQCh. 9 - Does inflation have anything to do with making a...Ch. 9 - Adjust the annual formula for a future value of a...Ch. 9 - If, as an investor, you had a choice of daily,...Ch. 9 - What is a deferred annuity? (LO9-4)Ch. 9 - Prob. 8DQCh. 9 - Prob. 1PCh. 9 - Prob. 2P
Ch. 9 - a. What is the present value of $140,000 to be...Ch. 9 - If you invest $9,000 today, how much will you have...Ch. 9 - Prob. 6PCh. 9 - Your uncle offers you a choice of $105,000 in 10...Ch. 9 - Your father offers you a choice of $105,000 in 12...Ch. 9 - Prob. 9PCh. 9 - How much would you have to invest today to receive...Ch. 9 - If you invest $8,500 per period for the following...Ch. 9 - Prob. 12PCh. 9 - Mrs. Crawford will receive $7,600 a year for the...Ch. 9 - Phil Goode will receive $175,000 in 50 years. His...Ch. 9 - Sherwin Williams will receive $18,500 a year for...Ch. 9 - Carrie Tune will receive $19,500 for the next 20...Ch. 9 - The Clearinghouse Sweepstakes has just informed...Ch. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - At a growth (interest) rate of 10 percent...Ch. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24PCh. 9 - Juan Garza invested $20,000 10 years ago at 12...Ch. 9 - Prob. 26PCh. 9 - Prob. 27PCh. 9 - Prob. 28PCh. 9 - Prob. 29PCh. 9 - You need $28,974 at the end of 10 years, and your...Ch. 9 - Prob. 31PCh. 9 - Prob. 32PCh. 9 - Prob. 33PCh. 9 - Prob. 34PCh. 9 - Prob. 35PCh. 9 - Prob. 36PCh. 9 - Prob. 37PCh. 9 - Del Monty will receive the following payments at...Ch. 9 - Prob. 39PCh. 9 - Prob. 40PCh. 9 - Prob. 41PCh. 9 - Prob. 42PCh. 9 - Prob. 43PCh. 9 - Prob. 44PCh. 9 - Prob. 45PCh. 9 - Your younger sister, Linda, will start college in...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Roger decides to start an investment account by depositing $5,000 today. In one year he will invest $500. He plans to make annual investments that increase by $100 each year ($600 in year two, $700 in year three, etc.). If he earns 9% on his investment, what will his account be worth 6 years from today, assuming he compounds annuallyarrow_forwardThomas Finley wishes to become a millionaire. His money market fund has a balance of $183,204 and has a guaranteed interest rate of 10%. How many years must Thomas leave that balance in the fund in order to get his desired $926,000?arrow_forwardYour friend is celebrating his 25th birthday today and wants to start saving for his retirement at age 65. He wants to be able to withdraw $100,000 from his savings account each birthday for 20 years following his retirement, and the first withdrawal will be on his 66th birthday. Your friend wants to invest his savings in the local bank, which offers 6 percent interest per year, and he wants to make equal annual payments on each birthday into his bank account. What amount should be deposited annually by your friend in order to withdraw $100,000 every year after retirement? Please show your work.arrow_forward
- Your coin collection contains 49 1950 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2045, assuming they appreciate at a 10 percent annual rate?arrow_forwardTo buy his favorite car, Larry is planning to accumulate money by investing his Christmas bonuses for the next five years in a security which pays a 10 percent annual rate of return. The car will cost $20,000 at the end of the fifth year and Larry's Christmas bonus is $3,000 a year. Will Larry accumulate enough money to buy the car?arrow_forwardKirk Van Houten, who has been married for 21years, 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 $12,000 in 9 years. Kirk currently has $4,591 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 isarrow_forward
- Your coin collection contains 70 silver dollars minted in 1950. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2060, assuming they appreciate at a 7.3% annual rate? (Round your answer to the nearest dollar.)arrow_forwardKirk van Houten, who has been married for 23 years, would like to buy his wife an expensive diamond ring with a platinum setting on their 30-year anniversary. Assume that the cost of the ring will be $10,500 in 7 years. Kirk currently has $4,555 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 Round to the decimal placesarrow_forwardKirk Van Houten, who has been married for 20 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 $19,851 in 10 years. Kirk currently has $4,500 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 is ______%. (Round to the nearest integer.) PVIF table is attachedarrow_forward
- Linus would like to start saving for his retirement. Starting April 1, 1950, he will make annual deposits into an account, with the last deposit coming on April 1, 1990. Linus assumes he will get pay raises, and plans to increase his deposits by 3.1 percent each year. If he would like to be able to withdraw 44000 dollars per year forever, with the first withdrawal on April 1, 1993, how much will Linus's first deposit need to be? (Assume an interest rate of 4.1 percent effective throughout.)arrow_forwardKirk Van Houten, who has been married for 22 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 $11,000 in 88 years. Kirk currently has $4,5994,599 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring?arrow_forwardYour grandparents would like to establish a trust fund that will pay you and your heirs $210,000 per year forever with the first payment 13 years from today. If the trust fund earns an annual return of 41 percent, how much must your grandparents deposit today?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT