An investor who recently returned from overseas decided to invest in a venture proposed by leading investment company.The investor is expected to receive ten(10) sum payment of $5000 at the end of each year for ten(10)years.However payments increased by 5% on the second(2nd),10% on the fourth (4th),15% on the sixth(6th),20% on the eighth(8th) and 25% on the tenth(10th) payment. Calculate the sum that should be payed to him at an interest of 5%

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A: Future Worth (FW) is the techniques used to ascertain the acceptability of available investment…

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A: Present Value of Annuity: It represents the present worth of the future annuity stream of cash…

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A: Interest: It can be defined as a payment or a charge that is made by the borrower to a lender.

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Q: Your group receives a phone proposal to invest in a new business. Thecaller informs you that it will…

A: The question gives the following information:

Q: You have just received a windfall from an investment you made in a friend's business. He will be…

A:

Q: 1. An investor who recently returned from overseas has decided to invest in a venture which has been…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: te

A: An annual or annualised return is a measurement of how much an investment has gained on average…

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.