Forty years ago, you began investing $2,000 a year. Because your investments earned an average of 2 percent a year, your investment portfolio has a current dollar value of $120,804. How much did you earn on your investments over the 40-year period of time?

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: Fifteen years ago, you deposited $12,500 into an investmentfund. Five years ago, you added an…

A: Present value lies under time value of money concept which refers to the value of the sum invested…

Q: Suppose you found an investment that earns 6.0% each year. Suppose you want to withdraw 11,000…

A: Present value is the value of future cashflow at todays date discounted at specified rate. formula:…

Q: Jessica invested a principal of $4000 at 6.5% simple interest. To the nearest year, it will take how…

A: Interest is an additional amount received on principal amount as per period of deposit. It increase…

Q: You are thinking about investing $4,558 in your friend's landscaping business. Even though you know…

A: Dear student to calculate the Present worth we have to use the following formula: The present worth…

Q: .)  How much money will you start with in each account? Show your work below.  (Hint:  be sure your…

A: Future Value: It is the future worth of the present investment and is estimated by the compounding…

Q: Assume that 25 years ago your dad invested $300,000, plus $34,000 in years 2 through 5, and $49,000…

A: The theory of time value of money is that the value of a certain sum of money received today is…

Q: Seventeen (17) years ago, you deposited $25,500 into an investment fund. Five years ago, you added…

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

Q: Joanne invested $25,000 seven years ago. Her arithmetic average return on this investment is 9.00…

A: Answer -    Formula for Future Value - = PV ( 1+r)n

Q: Suppose Karlem invested P20,000 for five years with simple annual interest of 10%. What is the…

A: Simple interest is a method under which interest is calculated on a principal amount. It calculates…

Q: st inherited some money, and a broker offers to sell you an annuity that pays $16,800 at the end of…

A: Value of annuity is present value of all year end money received over the period of life.

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 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: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…

A: Calculation of effective annual rate (EAR): Answer: Effective annual rate (EAR) is 8.16%

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: You plan to invest in securities that pay 6.2%, compounded annually.  If you invest $5,000 today,…

A: Investment securities are also known as financial assets which are purchased to make profits. They…

Q: Compute the total and annual returns on the described investment. Four years after buying 150…

A: Value of 150 shares of XYZ stock= $80 per​ share Sale value of the stock= $16,900   Total and annual…

Q: Suppose you inherited $630,000 and invested it at 8.25% per year. How much could you withdraw at the…

A: An annuity provides regular payment for a certain period of time.

Q: How much must you invest at 12% interest, compounding quarterly, in order to see your investment…

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

Q: You put $6,500 into a Roth IRA and invest everything in a corporate bond fund. The fund has an…

A: n=20 r=8.5-1.5=7/100=0.07 Present value=6500

Q: Padayappa has now retired after 40 years of employment. He just made an annual deposit to his…

A: a) Lets assume Padayappa invest ''SC'' in each end of period, so in this case future value of…

Q: Suppose you found an investment that earns 6.0% each year. Suppose you want to withdraw 24,000…

A: Given information: Investment earns 6% Future value is $24,000 Number of years is 4

Q: An investor paid $58,000 for an investment. He will get $5,780 for every two years (forever). What…

A: Option C. 4.86%

Q: You put $6,500 into a Roth IRA and invest everything in a corporate bond fund.  The fund has an…

A: An investment is an asset or item purchased with the intention of generating income or appreciation.…

Q: You are an employee that earns 20,000 per month. Assuming that you want to invest half of the amount…

A: The future value of the investment can be found by using the compound amount formula. The same is as…

Q: You have just invested a one -time amount of $4,000 in a stock -based mutual fund. This fund should…

A: Investment = $ 4000 Annual return = 6% Investment period = 28 Years

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: 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: Ten years ago, you put $5,000 in a savings account. Today, your investment has the purchasing power…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: fter 10 years, you managed to obtain a 7% average annual return on your investment portfolio. His…

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

Q: You bought a painting 5 years ago as an investment. You originally paid $168,000 for it. If you sold…

A: The compound interest rate is earning interest on interest, and the compound interest rate is…

Q: You made one investment of $1234 a year ago and another investment of $543 88 days ago. What is the…

A: Given Investment 1 = $1234 Investment II = $543

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: you have just invested a one time amount of $4,000 in a stock based mutual fund. this fund should…

A: Mutual fund is simply a scheme whose bussiness is to take money from the retail investors and make a…

Q: Four years ago Jonathan had started his saving for his dream holiday in Hawai by putting a lump sum…

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

Q: You purchased a piece of property for $30,000 nine years ago and sold it for $83,190. What was the…

A: The annual rate of return refers to the return which shows the total return earned from an…

Q: Suppose that an investor opens an account by investing $1,000. At the beginning of each of the next…

A: given information   the investor opens an account by investing $1000 the investor actual…

Q: Suppose you buy a house for $175,000. One year later, the market price of the house has risen to…

A: a) Profit on Investment = Ending price - Beginning price  Profit on Investment = $195,000 - $175,000…

Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…

A: The question is based on the calculation of effective annual interest rate and Future value of…

Q: An investment is now worth 46,200.  You bought this investment 15 years ago for $5,000.  What return…

A: investment worth now $46,200 Investment value 15 years ago $5,000     A = P(1+R)^TWhere A…

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: Suppose you are planning for retirement. At thebeginning of this year and each of the next 39…

A: Retirement fund is used for saving some portion of income by people for their retirement. It is also…

Q: Assume that 25 years ago your dad invested $260,000, plus $34,000 year 6 on At a very good interest…

A: Working Note 1: Value of P/A , P/F Year  @ 13% 1 0.88495575221 2 0.78314668337 3…

Q: If you invest P5,000 in a mutual fund with a total annual return (interest rate) of 8% and you…

A: Amount invested(PV) is P 5,000 Interest rate(rate) is 8% Time period is 5 year. To Find: Value of…

Q: When I was considering what to do with my $10,000 lottery winnings, my broker suggested that I…

A: worth of investment will be the future value of investment

Q: You are thinking about investing $4,865 in your friend's landscaping business. Even though you know…

A: Present value of future cash flow at comparative risk rate = Future cash flow / (1+expected rate of…

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…