an investment offers 3850 per year for 15 years, with the first payment occurring one year from now. If the required return is 6 percent, what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever?

Q: You plan to invest $50,000 today at an annual interest rate of 12% over 5 years. What the future…

A: Following details are given in the question: Present value (Investment today) = $50000 time period =…

Q: an investor paid$58000 for an investment. he will get$5780,for every 2 years(forever). what is his…

A: 5780= [58000×{(1+r)^no. of years)}]-58000 5780= [58000×{(1+r)}]-58000 [{(5780+58000)÷58000}-1]÷2…

Q: How long will it take for $4,000 to grow to $7,000 if the investment earns an interest rate of 16%…

A: Given information: Future value is $7,000 Present value is $4,000 Interest rate is 16% compounded…

Q: An investment will return $125 at the end of each month for 5 years and then $250 at the end of each…

A: Value at the end of 5 years of $250 received for next 3 years every month, can be calculated as…

Q: You can invest $ 35,000 today. This investment offers you a fixed annual return, computed monthly…

A: Perpetuity is the series of payments at fixed intervals for an infinite time period.  The amount of…

Q: If you invest $1,000 each month for five years, what will be the value of the investment after five…

A: The below formula can be used to calculate future value:

Q: How much should an investor pay to receive $12,000 three years (36 months) from now, assuming that…

A: RETURN 9%/12 0.75% NPER (n)  36 PMT 0 FUTURE VALUE 12000     Return= Rate

Q: An investment will pay S100 at the end of each of the next 3 years, $200 at the end of Year 4, 300…

A:

Q: A loan of $60,000 is due 10 years from today. The borrower wants to make annual payments at the end…

A: Firstly, calculating PMT with annual compounding:

Q: hat will pay $1,000/year for

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: 3. An investment offers P4,900 per year for 15 years, with the first payment occurring one year…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: If the current rate of interest is 6% APR, what is the future value of an investment that pays…

A: Interest rate = 6% Payment every two years = AED 15,000 Future value period = 20 Years

Q: Given an interest rate of 6.0 percent per year, what is the current value of a perpetual stream of…

A: Value of the perpetuity in 4 years will be = Annual amount / interest rate = $ 36,000 / 0.06 = $…

Q: If you put $2,500 in a savings account at the end of each year for 10 years and then allow the…

A: Yearly payment(PMT) is $2,500 Time period(initial) = 10 years Rate 12% per annum Futute value of…

Q: You borrow $200,000 with a 25-year payback term and a variable APR thatstarts at 8% and can be…

A: Calculation of the initial monthly Payment is shown: Formulation is shown: To open the "PMT…

Q: An investment will pay $2,445 two years from now, $3,433 four years from now, and $1,611 five years…

A: Present value is also known as a present discounted value, in which the future value of cash inflows…

Q: Suppose you were to receive $1,000 at the end of 10 years. If your opportunity rate is 10 percent,…

A: given, FV = $1000 N=10 R=10%

Q: Suppose that $4000 is invested each quarter, for the next 10 years. What is the future worth if the…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: The PHC is offering a prize of $5,000 per week for four years. If the interest rate is 5.2%,…

A: The present value of an annuity is the current value of a series of cash flow at a certain rate of…

Q: An investment offers $6,100 per year for 15 years, with the first payment occurring today. If the…

A: present value of annuity due formula: PVADUE=A×1-11+rnr×1+r where, A=annuity r=rate n=number of…

Q: If 35900 dollars is invested at an interest rate of 6 percent per year, find the value of the…

A: Future value refers to the future worth of a money that has been invested now. Future value of money…

Q: An investment offers $8800 per year for 14 years with the first payment occuring one year from now.…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: A 10-year investment will pay $2,500 at the end of this year, and the payments will grow at a rate…

A: Answer: Given data, Future value = $2,500 Required rate of return = 15% Paymets grow @ 5% per year

Q: Consider an investment that offers $4,000, $5,000 and $6,000 in the next 3 years, with the first…

A: Present value is the concept of time value of money. Time value of money concept states that value…

Q: If the current rate of interest is 6% APR, what is the future value of an investment that pays AED…

A: Because of time value, the true worth of funds keeps on changing because  of interest rate,…

Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300…

A: Present value can be calculated by using this equation PV =FV(1+r)n where FV =Future value PV…

Q: If 14700 dollars is invested at an interest rate of 9 percent per year, compounded semiannually,…

A: Using excel FV function

Q: value

A: Introduction: The payments that are made indefinitely or forever is referred to as perpetuity. In…

Q: An investment promises to pay you $80 per year for twenty years and, in addition, at the end of the…

A: The problem is to find the price that will be willing to be paid today for cashflows to be generated…

Q: If you invest a lump-sum amount of P25,000 at an interest rate of 12%, compounded annually, how much…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: An investment offers $6,100 per year for 15 years, with the first payment occurring one year from…

A:

Q: What interest rate, when compounded annually, is involved if an initial investment of $4000 turns…

A: Compound interest is the investment method in which the interest earned is redeposited back,…

Q: it is desired to save $20,000 by depositing $800 every 3 months in an investment that pays 8%…

A: Annuity means a set of finite number of payments which are the same in size and made in equal…

Q: If you have an investment of $1000 that grows at a rate of 6%, compounded annually, how much will it…

A: The Future Value of this investment is computed to find the worth of the investment after 10 years.…

Q: A financial contract is committing that 3 years from now, it will to start to pay a monthly return…

A: The question gives the following information:

Q: How much is the present value of your investment if you invest P2,000 semi-annually at the start of…

A: The present value is the value of the sum received at time 0 or the current period. Given…

Q: An investment that will give you monthly payments for 14 years costs $146,897. If your required…

A: An annuity is a series of cash flows that involve equivalent periodic amounts at equal time…

Q: I need a detailed explanation and assistance to solve this problem: An investment offers $6,800 per…

A: a) Calculation of present value of investment at 7% required returnThe present value of investment…

Q: How much money should you be willing to pay now for a guaranteed $500 per year for 10 years starting…

A: Present Value: It is  the current worth  of   future amount of money   at a given pace of return.

Q: An investment will pay $25 per year (indefinitely), starting in one year’s time. The annual payments…

A: Given, Annual payment = $25 per year The growth rate of Annual payments = 3% Price of the investment…

Q: An investment will give you monthly payments of $890 for 9 years. If your required return is 8.13%,…

A: Monthly payment (M) = $890 n = 9 years = 108 months r = 8.13% per annum = 0.6775% per month

Q: an investment will pay $2,445 two years from now, $3,433 four years from now, and $1,611 five years…

A: The present value of an investment is affected by the inflation rate and growth rate for a specified…

Q: An investment is expected to pay a return of $5,250 semi-annually (i.e. at the end of each six…

A: Effective interest rate is the return an investor will earn during the span of their investment…

Q: Keith Riggins expects an investment of $82,014 to return $10,000 annually for several years. If…

A: Formula: P= C×Annuity Factor where,  P is present value of an annuity C is future cash flow

Q: How much is the present value of your investment if you invest P2,000 semi-annually at start of…

A: The present value of annuity due is the present value of a series of cash payments that are expected…

Q: Wildhorse Co. is considering investing in an annuity contract that will return $28,140 annually at…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: How much should be invested each year for 10 years to provide you with $4000 per year for the next…

A: Present value include the value without interest rate and future value includes the value with…