Chuck Tomkovick is planning to invest $25,000 today in a mutual fund that will provide return of 8% each year. What will be the value of the investment in 10 years?

Q: ) Your parents have an investment portfolio of $400,000, and they wish to take out cash flows of…

A: Ordinary annuity is a type of annuity in which fixed interest payments are made at the end of each…

Q: You have been offered an investment that will pay you a lump sum of $30,000 25 years from today,…

A: The question is based on the concept of Annuities and Present value. Annuities are the series of…

Q: You expect to receive $26,000 at graduation in two years. You plan on investing it at 9.25 percent…

A: Present Value = $26,000  Future Value = $161,000  Rate (r) = 9.25%

Q: You deposit $19,000 today in an investment account and the annual rate of return is 12%, what will…

A: Formulas: Future value = Present value *(1+rate)^years

Q: A young man has decided to go into the business at the age of 25, he deposits a certain amount and…

A: N = Number of deposits = 11  Annual Increase in deposit = 50,000 Future Value Required = 30,000,000…

Q: You are considering investing $1,000 in an investment fund at the end of every quarter for the next…

A: As per the time value of money concept, a certain amount held today is worth more than holding the…

Q: You expect to receive a payout from a trust fund in 5 years. The payout will be for $12,200. You…

A: INTRODUCTION Present value of a cash flow needs to be multiplied by the CVF factor in order to…

Q: Suppose you invest $500 in a mutual fund today and $600 in one year. If the fund pays 8% annually…

A: The future value of the money is an accumulation of money with a certain rate for a particular…

Q: You invest $10,000 in Rapid Growth Funds, which appreciate by 1% per year, with yields reinvested…

A: In this question one has to find the future value of the project or account.

Q: Based on the number of years until your retirement, calculate the monthly savings required to build…

A: You are 32 years old and considering the retirement age of 60 years the no. of years left till…

Q: You are planning to save for retirement over the next 30 years. To save for retirement, you will…

A: Calculation of Stock Balance after 30 years                     1 Interest rate per annum…

Q: You have OMR 12,000 in cash. You can deposit it today in a mutual fund earning 8.2 percent…

A: We have to calculate future value at end of 10 years of both options and find which give more value.

Q: If Joe has $1,000 and invests it into a mutual fund that returns 10%, what willI be his Future Value…

A: Future value = Present value*(1+rate)^no of years

Q: If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

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: Larry James is planning to invest $25,400 today in a mutual fund that will provide a return of 0.10…

A: We need to find the future value of investment of Mr.Larry James. Future value is the amount reccive…

Q: What would the value of your investment be after five years if you invest P5,000 in a financial…

A: The value of the investment can be calculated with the help of future value formula. Since the…

Q: Robert Williams is planning to invest $30,000 today in a mutual fund that will provide a return of 8…

A: Future Value  = Present Value * (1+rate)^n Where, rate =8% n = no. of years i.e. 10

Q: Your organization has been asked to invest in a continuing care retirement center. Your investment…

A: Profitability index = Present value of cash flow / present value of investment

Q: I expect to save $100,000 in 15 years for my kid's college savings account. Assuming I get a return…

A: Discounting is a technique to compute the present value (PV) of future cashflows by using an…

Q: f you invest $9,000 today, how much will you have: a. In 2 years at 9 percent? b. In 7 years at 12…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Pedro Gonzalez will invest $5,000 at the end of each year for the next 9 years. The interest rate is…

A: The future value of the annuity is calculated when there is a requirement to find the future value…

Q: You have $12,500 you want to invest for the next 20 years. You are offered an investment plan that…

A: Amount we will have at the end of 20 years is future value of current investment

Q: Larry James is planning to invest $25,500 today in a mutual fund that will provide a return of 0.08…

A: Future Worth is value of current amount at future point of time. It is computed by compounding that…

Q: You are trying to plan for retirement in 10 years and currently you have $150,000 in a savings…

A: The question is based on the concept of calculating the future value of deposits for retirement…

Q: Thomas Taylor plans to invest $24,300 a year at the end of each year for the next seven years in an…

A: The value of the cash flow after a particular time period with the addition of the interest amount…

Q: You have just invested a one-time amount of $5,000 in a stock-based mutual fund. This fund should…

A: Given Information, Amount Invested = $5,000 Interest rate =9% Time Period =35 years  To Find:…

Q: An investor plans to invest $500 a year and expects to get a 10.5% return. If the investor makes…

A: Formula to be used,   PV = P[1-(1+r)^-n]/r where, PV=Present value P=Principal amount r=Rate of…

Q: You expect to receive $14,000 at graduation in two years. You plan on investing it at 8 percent…

A: Computation:

Q: 1. If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years?

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: planning to invest $25,000 today in a mutual fund that will provide a return of 8 percent each year.…

A: Answer 5.1:   Future value can be calculated using the following formula:   Future value = present…

Q: I am investing $50,000 right now and will add $8,000 each year for the next 10 years. The expected…

A: Investment = 50,000 Annual Payment = 8000 Time Period = 10 years Rate of return = 6.5% Future Value…

Q: . An investor buys a 150 TL investment fund from the bank and sells it for 165 TL after 25 days.…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: If you invest $12,000 today , how much will you have: a) In 6 years at 7 percent? b) In 15 years…

A: Investment amount = $12,000 Time period = 6 years  Rate of interest = 7% In this, the future value…

Q: Your investor promises you an investment opportunity that will yield a rate of return of 12⁹ per…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: You expect to receive $10,000 at graduation in two years.  You plan on investing it at 11 percent…

A: Future amount can be calculated as follows: = Present Value * (1 + rate)^ periods

Q: Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is offering five-…

A: here we need to find the interest rate.wherein we have been given the future value and present…

Q: If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the…

A: Investment = 5000 Annual Return = 8% Time Period = 5 years

Q: And investor plans to invest $500 a year and expect to get a 10.5% return if the investor makes…

A: Future value refers to the value that an amount would assume at a future time period after…

Q: Value of investment after 10 years   $ _______________

A: Investment refers to the allocation of the money in order to earn benefit over the money invested.

Q: ou have been offered an investment that will pay you a lump sum of $30,000 25 years from today,…

A: Answer : Lump sum = $30,000 Interest rate = 6% Time = 25 years PV 6%, 25year = 1/1.06^25 = 0.233 PVA…

Q: You plan to invest $1,000 per year in a diversified investment fund that you expect will earn a rate…

A: Annual investment (P) = $ 1000 Annual interest rate (r) = 8% Number of annual deposits (n) = 10

Q: Norwood Investments is putting out a new product. The product will pay out $25,000 in the first…

A: Value of perpetuity is present value of cash flow for perpetuity.

Q: You have OMR 12,000 in cash. You can deposit it today in a mutual fund earning 8.2 percent…

A: When the amount is invested with some interest rate over the period of time to get amount…

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.