Author Question: You have 50,000 invested in an account paying 3.50. If you just finished paying your total college ... (Read 339 times)

jon_i

  • Hero Member
  • *****
  • Posts: 549
You have 50,000 invested in an account paying 3.50. If you just finished paying your total college expenses for the coming year and your college costs 19,000 per year, how many years will your money last?
 
  Treat your costs like an annuity with the first payment one year from today.) Use a financial calculator.
  What will be an ideal response?

Question 2

In its first year of operations, 1980, the Gourmet Cheese Shoppe had earning per share of 0.26. Four years later, in 1984, EPS was up to 0.38, and 7 years after that, in 1991, EPS was up to 0.535.
 
  It appears that the first four years represented a supernormal growth situation and since then a more normal growth rate has been sustained. What are the rates of growth for the earlier period and for the later period? (Round to the nearest whole number)
  A) 6; 5
  B) 6; 3
  C) 10; 8
  D) 10; 5
  E) 12; 7



bdobbins

  • Sr. Member
  • ****
  • Posts: 326
Answer to Question 1

Answer: The financial calculator makes short work of this problem.
MODE = END
INPUT ? 3.50 -50,000 19,000 0
KEY N I/Y PV PMT FV
CPT 2.81

For those who like to work for their answers:

n = = = 2.81 years.
Explanation: Use a financial calculator or a spreadsheet.

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

For a complete list of videos, visit our video library