Brief Exercise G-10 Bramble Company earns 5% on an investment that will return $

Question

Brief Exercise G-10 Bramble Company earns 5% on an investment that will return $440,000 9 years from now. Click below to view the factor tables. Table 1 Future Value of 1 Table 3. Present Value of 1 Table 4, Present Value of an Annuity of 1 (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the amount Bramble should invest now to earn this rate of return? (Round answer to 2 decimal places, e.g. 25.25. n Annuity of 1 Bramble Company should invests LINK TO TEXI

Explanation / Answer

Future Value = $440,000
Period = 9 years
Interest Rate = 5%

Present Value = Future Value * PV of $1 (i%, n)
Present Value = $440,000 * PV of $1 (5%, 9)
Present Value = $440,000 * 0.64461
Present Value = $283,628.40

Bramble Company should invest $283,628.40

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.