Choose the letter/s of the correct answer/s. In an investor’s perspective, which among these has the best potential for your money to grow, using the same present amount? Assume compound interest methods. A. i = 3.67%, f = 1.16%, n = 20 years B. r = 25%, m = 3; n = 15 years C. i = 4%, f = 2%, n = 18 years D. r = 15%, m = 2, n = 7 years
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Choose the letter/s of the correct answer/s.
In an investor’s perspective, which among these has the best potential for your money to grow, using the same
present amount? Assume compound interest methods.
A. i = 3.67%, f = 1.16%, n = 20 years
B. r = 25%, m = 3; n = 15 years
C. i = 4%, f = 2%, n = 18 years
D. r = 15%, m = 2, n = 7 years
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- If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%In an investor’s perspective, which among these has the best potential for your money to grow, using the samepresent amount? Assume compound interest methods. A. i = 3.67%, f = 1.16%, n = 20 yearsB. r = 25%, m = 3; n = 15 yearsC. i = 4%, f = 2%, n = 18 yearsD. r = 15%, m = 2, n = 7 yearsIn an investor’s perspective, which among these has the best potential for your money to grow, using Php 10,000 as the present amount? Assume compound interest methods. A. i = 3.67%, f = 1.16%, n = 20 yearsB. r = 25%, m = 3; n = 15 yearsC. i = 4%, f = 2%, n = 18 yearsD. r = 15%, m = 2, n = 7 years
- You have just received a windfall from an investment you made in a friend’s business. You will receive end-of-year cash flows of $14,050, $3,250 and $16,480 for years 1 to 3, respectively. If the annual discount rate is 6%. a) What is the value of your windfall today? b) What is the value of your windfall at the end of year 3?For the following exercise, use the compound interest formula, A(t) = P 1 + r n nt , where money is measured in dollars.After a certain number of years, the value of an investment account is represented by the expression 10,950 1 + 0.03 2 24 . How many years had the account been accumulating interest? yrCalculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:
- Tom Alexander has an opportunity to purchase any of the investments shown in the following table Investment Price Single cash inflow Year of Receipt A $18,000 $30,000 5 B $600 $3,000 20 C $3,500 $10,000 10 D $1,000 $15,000 40 The purchase price, the amount of the single cash inflow, and its year of receipt are given for each investment. Which purchase recommendations would you make, assuming that Tom can earn 10% on his investments? The present value of Investment A is $ The present value of Investment B is $ The present value of Investment C is $ The present value of Investment D is $ Which purchase recommendations would you make, assuming that Tom can earn 10% on his investments? A.Investment B B.Investments A and C C.Investments B and C D.Investment DModel each investment as an equation, and then arrange the investments in ascending order (from least to greatest value) based on their values after three years. Put from least to greatest in value after three years.$2,100 in a money market account that yields 12% per year$2,800 in a term CD that yields interest of 4% per year$2,520 in a savings account that yields interest of 5% per yearAssume you invest $1 000 at the end of this year, at the end of the second year, and at the end of the third year. How much will you have at the end of the fourth year if interest rates are 5% p.a.? Select one: a. $3,405.54 b. $3,310.12 c. $3,215.41 d. $3,100,21
- Consider that Adjovi Hevi placed GHS 12,525 in Mutual Fund for the next 15 years. She is to earn a quarterly interest rate of 11.25% per year. a. Compute her Future value using i. Simple interest rate ii. Compound interest rate iii. Explain the difference in your resultsPlease show working Please answer a , b and c a. An investment will pay $50 at the end of each of the next 3 years, $200 at the end of Year 4, $350 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 9% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $ __________ Future value: $ ___________ b. Your parents will retire in 20 years. They currently have $340,000 saved, and they think they will need $1,250,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places. ___________ % c. If you deposit $2,000 in a bank account that pays 8% interest annually, how much will be in your account after 5 years? Do not round intermediate calculations. Round your answer to the nearest cent.John has an investment opportunity that promises to pay him $16,000 in four years. Suppose the opportunity requires John to invest $13,200 today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What is the interest rate John would earn on this investment? (Round your interest rate to the nearest whole percentage.) Solve for i Present Value: n = i = Future Value: