Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. meadow brook manor would like to buy some addition

Meadow Brook Manor would like to buy some additional land and build a new assisted living...

60.2K

Verified Solution

Question

Finance

Meadow Brook Manor would like to buy some additional land andbuild a new assisted living center. The anticipated total cost is$25 million. The CEO of the firm is quite conservative and willonly do this when the company has sufficient funds to pay cash forthe entire construction project. Management has decided to save$1.4 million a quarter for this purpose. The firm earns 6 percentcompounded quarterly on the funds it saves. How long does thecompany have to wait before expanding its operations?

a. 3.99 years b. 7.99 years c. 3.49 years d. 6.79 years e. 4.89years

Can you show me how to do this in excel? Thank you

I would like to use a formula in excel to solve it.

Answer & Explanation Solved by verified expert
4.2 Ratings (781 Votes)
Interest rate pa 6 Year Quarter Quartlery Saving Principal for Interest calculation Interest for the quarter Accumulated Balance Year 1 1 1400000 1400000 21000 1421000 Year 1 2 1400000 2821000 42315 2863315 Year 1 3 1400000 4263315 63950 4327265 Year 1 4 1400000 5727265 85909 5813174 Year 2 1 1400000    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Meadow Brook Manor would like to buy some additional land andbuild a new assisted living center. The anticipated total cost is$25 million. The CEO of the firm is quite conservative and willonly do this when the company has sufficient funds to pay cash forthe entire construction project. Management has decided to save$1.4 million a quarter for this purpose. The firm earns 6 percentcompounded quarterly on the funds it saves. How long does thecompany have to wait before expanding its operations?a. 3.99 years b. 7.99 years c. 3.49 years d. 6.79 years e. 4.89yearsCan you show me how to do this in excel? Thank youI would like to use a formula in excel to solve it.

Other questions asked by students

Q

ithout his her knowledge O Spyware O Microsoft Word private

Biology
Q

Based on Le Chatelier's Principle in which direction will the following reaction proceed if it is...

Chemistry
Q

y"+y=-1 , y(0)=0 , y(Pi/2)=0 please repeat the answer by details (by properties of green function only) and...

Advance Math
Q

Question 9 What criterion is used here to prove that the two triangles ABC and...

Geometry
Q

Find the following probability using the standard normal distribution.P(z < 1.7)Select the correct answer below:0.54310.86590.95540.7659

Basic Math
Q

Kristen Lu purchased a used automobile for $11,450 at the beginning...

Accounting
Q

Consider the following transactions: (a) Borrows cash, DKK 80,000. (b) Delivers services on credit, DKK...

Accounting
Q

2 Indicate the proper treatment of the numbered items listed below by entering next to...

Accounting
Q

Quark Inc. just began business and made the following four inventory purchases in june: Beginning...

Accounting
Q

8. Black Company determined its December 31,2022 inventory to be $1,000,000 based on a physical...

Accounting
Q

\table[[Direct materials,$397,800

Accounting
Q

Yield curves change very little in the short run (3 months). ...

Accounting