All is expected to invest an amount of 50,000 AED per year from the end of his second year of working . He will invest for 4 years . After which he will increase his investment by 10 % per year for another 4 years . The interest rate is fixed at 12 % per year . What is the present worth of his investment ?

All is expected to invest an amount of 50,000 AED per year from the end of his second year of working . He will invest for 4 years . After which he will increase his investment by 10 % per year for another 4 years . The interest rate is fixed at 12 % per year . What is the present worth of his investment ?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

See similar textbooks

Similar questions

You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
When he started work on his twenty-first birthday, D. B. Cooper decided to invest money each month with the objective of becoming a millionaire by the time he reaches age 60. If he expects his investments to yield 9% per annum, compounded monthly, how much should he invest each month?
Josh has an investment account with $50,000. If Josh earns 6% per year and contributes $400 each month, how much will his investments be worth in 10 years?
An investor is considering an investment that will pay $2,150 at the end of each year for the next 10 years. He expects to earn a return of 12 percent on his investment, compounded annually. How much should he pay today for the investment? How much should he pay if the investment returns are received at the beginning of each year?
Mr. Areola is planning to make an additional investment at the end of each year for his retirement in 20 years. Mr. Areola plans to invest $5,000 each year for the first 5 years, $8,000 each year for the next 5 years, and $ 12,000 each year for the remaining 10 years. If the rate of return of 11 percent can be earned in these investments, how much money will Mr. Areola have at the end of 20 years?