A doll sold for $200 in 1975 and was sold again in 1989 for $479. Assume that the growth in the value V of the collector's item was exponential. THE a) Find the value k of theexponential growth rate. Assume V = 200. k = 0.062 (Round to the nearest thousandth.) b) Find the exponential growth function in terms of t, where t is the number of yearssince 1975. V(t) =

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Answered: A doll sold for $200 in 1975 and was…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The following exponential growth equation is used to calculate a given quantity's growth over a set period of time: F=P(1+r/100)n Match the letters in the equation to the term that it is representing: F P R N A. initial value B. final value C. interest rate D. years
value of lamp in $ can be estimated by V=125(1.12t)^t where t in years since 1965 a- find the correct ones - Increasing compounded continuously decreasing growth decay linear exponential b- find the Decay/growth rate- c - value of the lamp in 2020 d- find the average rate of change between 1965 and 2020
Assume that at the beginning of the year, you purchase an investment for $6,300 that pays $130 annual income. Also assume the investment's value has increased to $6,900 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return % b. Is the rate of return a positive or a negative number? Positive Negative
Assume that at the beginning of the year, you purchase an investment for $7,200 that pays $100 annual income. Also assume the investment's value has decreased to $6,800 by the end of the year. (a) What is the rate of return for this investment? (Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.) Rate of return % (b) Is the rate of return a positive or negative number? Positive O Negative
A machine cost P25,000 ten years ago. If the rate of inflation for the first 4 years is 6% and 9% on the years thereadter, find the cost of the machine now assuming that the cost in price was due to inflation only. Using this formula F=P(1+f)^n.
b1. F = Pert , which assumes continuous compounding, says that the Future value (F) of an amount (P) invested today at an annual rate (r), expressed as a decimal for the time (t), in years is given by the function. Thus if you invested $100 at the annual rate of 5 1/2% for 6 years and 3 months you would get back (at the end of the time), F = $100e(0.055)(6.25) = $100e(0.3438) = $100(1.4102) = $141.02. If you invest $15000 today, what amount does the formula say you will get back if you leave it for 5 years and 3 months in a savings account paying 4 1/2% annually?
1. (See image), which assumes continuous compounding, says that the Future value (F) of an amount (P) invested today at an annual rate (r), expressed as a decimal for the time (t), in years is given by the function. Thus if you invested $100 now at the annual rate of 5 1/2% for 6 years and 3 months you would get back (at the end of the time), F = $100e^(0.055)^(6.25) = $100e^(0.3438) = $100(1.4102) = $141.02. Suppose you put $2000 in a savings account when your son was born for 18 years and 6 months to help pay for his college education. If you can earn 3% annually on it, what should you have in his education savings account in 18 years and 6 months?
Example 1. Compound interest When interest is compounded continuously, the rate of change of the amount x of the investment is proportional to the amount present. In this case, the proportionality constant is the annual interest rate r (as a decimal); that is, dx/dt = rx. (a) If $2000 is invested at 8%, compounded continuously, find an equation for the future value of the investment as a function of time t, in years. (b) How long will it take for the investment to double? (c) What will be the future value of this investment after 35 years?
Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was 15.2 percent and the standard deviation of this asset for the period was 33.1 percent. Use the NORMDIST function in Excel to answer the following questions. a. What is the approximate probability that your money will double in value in a single year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161. b. What is the approximate probability that your money will triple in value in a single year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 8 decimal places, e.g., 32.16161616. a. Probability b. Probability % %
ok Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was 15.4 percent and the standard deviation of this asset for the period was 33.3 percent. Use the NORMDIST function in Excel to answer the following questions. a. What is the approximate probability that your money will double in value in a single year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161. b. What is the approximate probability that your money will triple in value in a single year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 8 decimal places, e.g., 32.16161616. ences a. Probability b. Probability % %
Ten annual returns are listed in the following table (Click on the following icon in order to copy its contents into a spreadsheet.) 19.9% 18.0% 1.2% - 16.5% 45.6% 16.6% a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning, how much would you have at the end? 50.0% 43.3% a. What is the arithmetic average return over the 10-year period? The arithmetic average return over the 10-year period is% (Round to two decimal places.) 45.2% -3.0%
What will price be in 1 year? c. What do you expect to happen to price in the following year? (Round your dollar value to 2 decimal places.) d. What is your estimate of DEQS’s intrinsic value per share if you expected DEQS to pay out only 10% of earnings starting in year 6? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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