An investment of $1,000 was made 35 years ago. What is the amount now at the market interest rate of 5% per year and an inflation rate of 2% per year?

Q: Find the annual worth (AW) of the following investments (from year 1 to year 20) if you invest $600…

A: Investment schedule:

Q: 2. ABC Corporation plans to set aside $50,000 per year beginning 1 year from now for replacing…

A: Annual amount (P) = $50,000 Interest rate (r) = 10% Inflation rate (i) = 4% Period (t) = 6 Years

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: An investment pays $2,100 per year for the first 7 years, $4,200 per year for the next 7 years, and…

A: The discount rate is 8.20% compounding quarterly. The cash flows have a periodicity of 1 year.…

Q: Find the time required for an investment of 3000 dollars to grow to 12000 dollars at an interest…

A: GIVEN, pv = $3000 fv = $12000 rate = 4% monthly compounding m = 12

Q: What is the present value of an investment of $5,000 per year for 8 years with 10% interest

A: Given information : Amount per year = $5,000 Number of years = 8 Annual interest rate = 10%

Q: a) How much will this investment be worth after 10 years? (Round your answer to the nearest cent.) $…

A: Investment Amount = $49,000 Time period = 10 years Rate of interest = 8% compounded continuously.…

Q: An investment pays $2,100 per year for the first 4 years, $4,200 per year for the next 3 years, and…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: Do the following present value problems. You must set up all present value problems before…

A: We know that  present value calculated using the cash flow which is discounted with the appropriate…

Q: If we were to invest $10,000 in an S&P 500 index fund, pay 0.2% annual fees,and add $100 a month…

A: Computation:

Q: An investment of $1000 was made 25 years ago. The amount available 10 years from now at the market…

A:

Q: An investment offers $7,100 per year for 20 years, with the first payment occurring one year from…

A: When a fixed amount is received over the years, it is termed as annuity. To find the present value…

Q: You invest $1,400 today and expect to sell your investment for $3,200 in 10 years.   a-1.…

A: Present Value is the current value of a cash flow that can be occurred in future. To find the…

Q: You are interested in an investment project that costs $40,000 initially. The investment has a…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: You just signed a business consulting contract with one of your clients. The client will pay you…

A:

Q: What single investment made today, earning 10 % annual interest, will be worth $10,000 at the end of…

A: A) The present value of a future value can be calculated using the formula below: Given; FV = 10000…

Q: You have been offered an investment opportunity that pays $600 every quarter for nine years and…

A: Current value is the present value of the future payments at a given rate of return. Given:…

Q: You have an investment account that started with $4,000 10 years ago and which now has grown to…

A: (a)  Holding period return = (Investment at end - Investment at beginning) / Investment at beginning…

Q: An investment opportunity requires a payment of $910 for 12 years, starting a year from today. If…

A: The question gives the following information:

Q: The company you work for is considering a new product line that is projected to have the net cash…

A: 1 given, inflation adjusted rate =20% year cashflow discounting factor @ 20% pw 0 -10,000 1…

Q: An annuity pays $1000 per year for 12 years. Inflation is 6 percent per year. The annuity costs…

A: Internal rate of return is one of the modern techniques of capital budgeting which considers the…

Q: An investment of $491,588 (today) by a company results in a series of payouts over the next 10…

A: Internal rate of return is the actual interest rate received on an investment. It can be equal to or…

Q: Your finance advisor offers you an investment that promise $200000 in 15 years from now. He said…

A: INFORMATION:   A.     YEARS 15 PMT (MONTHLY DEPOSIT) 0 PRESENT VALUE $45,000 FUTURE…

Q: Gretchen had $15,000 to invest (Current Year $, year 0), which she invested for 10 years. During…

A: Let r = Real rate of return i = Inflation rate Nominal rate (x) = 12% Initial investment (P) =…

Q: Assume that an investment, with a single initial cost of $1,000 and a yield of $50 monthly for 10…

A: IRR is one of the toll for capital budgeting where, NPV of cash flow is zero. The best way to solve…

Q: Consider an investment that costs 100,000 and has a cash inflow of 30,000 every year for 5 years.…

A: Given Information, Initial Cost =100,000 Cash Inflow = 30,000 Annually  Time Period =5 years…

Q: A firm is considering a six-year project with a payback period of 3.5 years. It has cash flows the…

A: Payback period means the period when the project is able to recover its initial investment without…

Q: a. What is PV of $100 received in year 10, with 1% discount rate?b. Hans made investment $10 million…

A: Present Value Present value refers to the discounted value of cash flows which is occurring at a…

Q: What is the present value of $8,000 received 10 years from today when the interest rate is 4% per​…

A: The payment amount which is expected to receive in future is discounted for the period between today…

Q: An initial investment of 2,000 dollars increases in value by 10 % every year. At the end of every…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: future value of an investment made 5 years ago is P150,000. If the investment offered an annual…

A: Effective rate goes on increasing if the compounding goes on increasing. And effective rate is less…

Q: In 2001, a sum of $3000 was invested at a rate of 6.5% per year for 18 years. a)  Write an equation…

A:

Q: The present worth of income from an investment that follows an arithmetic gradient was projected to…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: An investment requires $16,000 today, and produces the first cash flow of $800 in two years (year…

A: Net Present value or NPV is the sum of the present value of all  future cash flow minus the sum of…

Q: General price inflation is estimated to be 3% for the next 5 years, 5 % the 5 years after that, and…

A: Future Worth(FW) is value of current amount in future time calculated by compounding current amount.

Q: You are evaluating a growing perpetuity investment from a large financial services firm. The…

A: Present value shows the value of the investment in the present time.

Q: present

A: Formula to calculate present value of growing perpetuity  Payment for the first year/Discount rate -…

Q: In one year’s time, you plan to invest a certain sum of money that will grow to R100 000 ten years…

A: Future value = R 100,000 Period = 10 Years Annual interest rate = 11%       As per formula…

Q: You will have $100,000 exactly 7 years from now. You began with an investment of $50,000 at Time…

A: The formula to calculate the fv is FV=Pmt[(1+i)n−1/i] Given: FV=$100,000 PMT=50,000 n=7

Q: Consider an investment which pays $3,000 at the end of year 1, year 2, and year 3. In year 4, the…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Kant Miss Company is promising its investors that it will double their money every 4 years. What…

A: The question is not clear on which methods to use, hence have used both 72 and time value equation…

Q: ow long will it take an investment of $2,500 to grow three times in value to $7,500? Assume that the…

A: The given problem can be solved using NPER function in excel. NPER function computes no. of years/…

Q: An investment offers $6,800 per year for 20 years, with the first payment occurring one year from…

A: Present Value: The present value is the concept that states an amount of money today is worth more…

Q: I need to answerthese questions can you help me out, Questions 4,5 4- What is the current value…

A: Note: It is a case where no single question is specified to solve among the multiple questions…

Q: A DSL company has made an equipment investment of $40 million with the expectation that it will be…

A: Given information: Equipment investment is $40,000,000 Number of years is 10 Rate of return is 12%…

Q: An investment offers $5,300 per year, with the first payment occurring one year from now. The…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one is…

A: Calculation of    p0     The value of  P0 can be calculated by using  the  following formula P0=…