Your finance text book sold 51,000 copies in its first year. The publishing comp

Question

Your finance text book sold 51,000 copies in its first year. The publishing company expects the sales to grow at a rate of 20.0 percent for the next three years, and by 12.0 percent in the fourth year. Calculate the total number of copies that the publisher expects to sell in year 3 and 4. (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answers to the nearest whole number.)

Trevor Price bought 10-year bonds issued by Harvest Foods five years ago for $1,011.92. The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of the bonds is $1,080.88, what is the yield that Trevor would earn by selling the bonds today? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

Explanation / Answer

copies sold in the next first yr = 51000*1.2 = 61200

copies sold in the next second yr = 51000*1.2^2 = 73440

copies sold in the next third yr = 51000*1.2^3 = 88128

copies sold in the next fourth yr = 88128*1.12 = 98703.36

b)

total no of copies sold in combined 3 and 4 year = 186831.36

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