CH14.5.a Value of Investment. Dennis wants to invest the $32,000 he received fro
ID: 2645015 • Letter: C
Question
CH14.5.a Value of Investment. Dennis wants to invest the $32,000 he received from his grandfather's estate. He wants to use the money to finance his education when he pursues his doctorate in four years. What amount will he have in five years if he earns a 9 percent return?
CH14.5.b Value of Investment. From CH14.5.a, if he receives a 15 percent return?
CH14.5.c Value of Investment. From CH14.5.a, if he receives an 18 percent return?
CH14.6.a Value of Investment. Taylor will start investing $1,500 a year in stocks. He feels he can average a 5 percent return. If he follows this plan, how much will he accumulate in 4 years?
CH14.6.b Value of Investment. From CH14.6.a, how much will he accumulate in 7 years?
CH14.6.c Value of Investment. From CH14.6.a, how much will he accumulate in 16 years?
CH14.7 Capital Loss. Zack just sold 600 shares of stock A for $16,000. In addition, he just sold 750 shares of stock A for $7,500. Charles had paid $25 per share for all his shares of stock A. What amount of loss will he have, assuming both sales were on stocks held for more than one year?
CH14.5.a Value of Investment. Dennis wants to invest the $32,000 he received from his grandfather's estate. He wants to use the money to finance his education when he pursues his doctorate in four years. What amount will he have in five years if he earns a 9 percent return?
CH14.5.b Value of Investment. From CH14.5.a, if he receives a 15 percent return?
CH14.5.c Value of Investment. From CH14.5.a, if he receives an 18 percent return?
CH14.6.a Value of Investment. Taylor will start investing $1,500 a year in stocks. He feels he can average a 5 percent return. If he follows this plan, how much will he accumulate in 4 years?
CH14.6.b Value of Investment. From CH14.6.a, how much will he accumulate in 7 years?
CH14.6.c Value of Investment. From CH14.6.a, how much will he accumulate in 16 years?
CH14.7 Capital Loss. Zack just sold 600 shares of stock A for $16,000. In addition, he just sold 750 shares of stock A for $7,500. Charles had paid $25 per share for all his shares of stock A. What amount of loss will he have, assuming both sales were on stocks held for more than one year?
Explanation / Answer
CH 14.5.a Amount to be received in 5 years by Dennis = Principal Amt (1+r/100)n Amount to be received in 5 years by Dennis = 32000 (1+ 0.09)5 Amount to be received in 5 years by Dennis = 49235.97 CH 14.5.b If Dennis recieves 15% return, Amount to be received in 5 years by Dennis = 32000 (1+ 0.15)5 Amount to be received in 5 years by Dennis = 64363.43 CH 14.5.c If Dennis recieves 18% return, Amount to be received in 5 years by Dennis = 32000 (1+ 0.18)5 Amount to be received in 5 years by Dennis = 73208.25 CH 14.6.a Amount to be with Taylor after 4 years = 1500 (FV 5%, 4years) Amount to be with Taylor after 4 years = 1500 x 4.3101 Amount to be with Taylor after 4 years = 6465.15 CH 14.6.b Amount to be with Taylor after 7 years = 1500 (FV 5%, 7years) Amount to be with Taylor after 7 years = 1500 x 8.1420 Amount to be with Taylor after 7 years = 12213 CH 14.6.c Amount to be with Taylor after 16 years = 1500 (FV 5%, 16years) Amount to be with Taylor after 16 years = 1500 x 23.6575 Amount to be with Taylor after 16 years = 35486.25 CH 14.7 Loss = Purchase Price - Sales proceed Loss = {(600+750) x 25} - 16000 - 7500 Loss = {(600+750) x 25} - 16000 - 7500 Loss = 10250
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