This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume you put 2,000 into a tax-free investment and leave it there for 45 years at an annual rate of ... (Read 128 times)

mrsjacobs44

  • Hero Member
  • *****
  • Posts: 500
on: Jul 10, 2018
Assume you put 2,000 into a tax-free investment and leave it there for 45 years at an annual rate of 8. According to the Rule of 72, your investment will grow to a value of about 64,000.
 
  Indicate whether the statement is true or false.

Question 2

A firm has prepared the coming year's pro forma balance sheet resulting in a plug figure in a preliminary statementcalled the external financing requiredof negative 250,000. The firm may prepare to ________.
 
  A) sell common stock totaling 250,000
  B) arrange for a loan of 250,000
  C) do nothing; the balance sheet balances
  D) invest in marketable securities totaling 250,000


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Sarahjh

  • Sr. Member
  • ****
  • Posts: 370
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: TRUE
Explanation: According to the Rule of 72, an investment earning 8 a year will double in value approximately every 9 years. Thus, the 2,000 will grow to about 64,000 in 45 years. In 45 years, the original investment will double five times (2K  2 = 4K, 4K  2 = 8K, 8K  2 = 16K, 16K  2 = 32K, and 32K  2 = 64K).

Answer to Question 2

D


mrsjacobs44

  • Member
  • Posts: 500
Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review

alexanderhamilton

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Exercise increases the heart rate. Exercise increases the heart rate.
Plasma protein binding and drug availability: (a) drug exists in a free state or bound to plasma pro Plasma protein binding and drug availability: (a) drug exists in a free state or bound to plasma pro
A photograph of Commodore Matthew Perry in 1855 juxtaposed with a Japanese portrait of him. When Per A photograph of Commodore Matthew Perry in 1855 juxtaposed with a Japanese portrait of him. When Per
Mount Pinatubo caused ~1˚C cooling for up to 5 years Mount Pinatubo caused ~1˚C cooling for up to 5 years
How an Increase in Income Inequality Affects the Desired Tax Rate How an Increase in Income Inequality Affects the Desired Tax Rate
Promise Gluten Free Bread Promise Gluten Free Bread
Video: Secondary and tertiary levels of protein structure Animation

For a complete list of videos, visit our video library