Author Question: You have accumulated 8,000 toward the down payment on a piece of lake front property in rural ... (Read 87 times)

CQXA

  • Hero Member
  • *****
  • Posts: 546
You have accumulated 8,000 toward the down payment on a piece of lake front property in rural Minnesota. You wish to accumulate 12,000 for the down payment in four years.
 
  If you choose not to contribute more new funds to your down payment fund, what rate of return must your fund earn to reach your objective in the specified time? Assume that your investment fund compounds annually.
  A) 10.67 per year
  B) 50.00 per year
  C) 12.50 per year
  D) There is not enough information to answer this question.

Question 2

Rent and life insurance expenses are examples of flexible expenses.
 
  Indicate whether the statement is true or false



cclemon1

  • Sr. Member
  • ****
  • Posts: 312
Answer to Question 1

A
Explanation: A) r = (FV/PV)(1/n) -1 = 12,000/8,000 )(1/4 ) - 1 = 10.67 per year.

Answer to Question 2

FALSE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

Inotropic therapy does not have a role in the treatment of most heart failure patients. These drugs can make patients feel and function better but usually do not lengthen the predicted length of their lives.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

For a complete list of videos, visit our video library