Q: ,what is the NPV of this investment?
A: Net Present Value: It is a measure of profitability and shows the absolute profit or loss made from…
Q: What would be the annual average return for an investor that is requiring 4.5X after 3.5 years?
A: After 3.5 years required 4.5 times of initial investment.
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A: A method of computing interest amounts in which the compounding effect was not considered by the…
Q: You have $100 to invest. If you can earn 12% interest, about how long does it take for your $100…
A: Time value of money-It is based on the concept that money earned today is worth more than similar…
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A: The present value is the value of the sum received at time 0 or the current period. It is the value…
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A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…
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A: To Find: Value of X
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A: The net present value (NPV) is a financial metric that helps in finding out the total value of an…
Q: You have an opportunity to make an investment that will pay $100 at the end of the first year,…
A: Here, Cash Flow in Year 1 is $100 Cash Flow in Year 2 is $400 Cash Flow in Year 3 is $200 Cash Flow…
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A: Interest means the extra amount which we received because of investment made and will be paid in…
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A: Net Present value equal to present value of cash flow minus initial investment
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A: Future value is defined as the amount that one gets at the end of the maturity period. An investment…
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Q: In how many years will be the investment to double in value at 5% simple interest rate?
A: Let's assume principal amount be 100, then it would be doubled to 200. Interest rate = 5%
Q: 1. $30,000 is invested at a compounded yearly interest rate of 6%, with the interest compounded…
A: Since you have asked a question with multiple sub parts, we will solve the first 3 parts for you as…
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Q: invest it at a nominal interest rate of 8%. Given the expected inflation is 5% per year, what is the…
A: Given, Nominal interest rate = 8% Expected inflation = 5%
Q: How long will it take for an investment to double in value if it earns 5% compounded continuously?
A: Continuously compounded interest rate is the interest which is calculated on the principal amount as…
Q: Suppose you can borrow money at an annual interest rate of 8% but can save money at an annual…
A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…
Q: About how many years would it take for your investment to grow fourfold if it were invested at an…
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Q: How many years will it take for P200,000 to double at a simple interest rate of 16%?
A: As per Simple Interest : Future Value = Principal Amount + Interest
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Q: How long will it take to double your investment if the interest rate is r=0.06 (r=6%)?
A: Time value of money is a concept which states that a dollar is worth more today than anytime in the…
Q: You have $100 to invest. If you can earn 12% interest, about how long does it take for your $100…
A: Amount to be invested = $100 Interest rate = 12%
Q: Suppose you want to start saving for retirement. You decide to continuously invest $15000 of your…
A: Data given: Rate of installment (continuously)= $15000 Rate of interest = 6%
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Q: How long (in months) will it take for your investment to double at 5% interest?
A: This question would be solve by using the compounding interest formula and the formula is - A = P…
Q: How many years will it take for an investment to double itself if the interest rate is 10%?
A: As per Rue of 72 Time taken to double the investment = 72 / Rate of return
Q: What is the present value of the investment if the interest rate is 9 percent?
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A: Present value is $1,250. Future value is $1,350. The maturity period is one year.
Q: If you invest $131,300 in a project which yields an annual return of $25,400, how many years will it…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
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Q: What is the present value for a future value of FV=$500,000 at time t=36 if the interest rate is…
A: Since you have asked multiple questions , we will solve the first question for you. If you want any…
Q: How many years will it take an investment to triple if the interest rate is 8% compounded…
A:
Q: Use the formulas A = P(1 + r/n)nt and A = Pert to solve this problem. You decide to invest $6000 for…
A: Amount of investment can be calculated using the following formulae: A = P(1 + r/n)nt A = Pert…
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A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
How long will it take to increase your investment by 2.5 times if the interest rate is r=0.14 (r=14%)?
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- How long will it take to double your investment if the interest rate is r=0.06 (r=6%)?What is the present value for a future value of FV=$500,000 at time t=36 if the interest rate is r=0.05 (e.g., r=5%)? What is the interest rate “r” if PV=$100 and the FV=$350 in year t=12? What is the interest rate “r” if PV=$1250 and the FV=$2150 in year t=10? How long will it take to double your investment if the interest rate is r=0.06 (r=6%)? How long will it take to increase your investment by 2.5 times if the interest rate is r=0.14 (r=14%)? Which is the better option if the interest rate is r=0.10 (r=10%)? Show all work used to arrive at your answer. a. Option I: Receive $1000 today at time t=0. b. Option II: Receive $1615 at time t=5.10) Which is the better option if the interest rate is r=0.07 (r=7%)? Show all work used to arrive at your answer. a. Option I: Receive $510 today at time t=0. b. Option II: Receive $1000 at time t=10.You have $100 to invest. If you can earn 12% interest, about how long does it take for your $100 investment to grow to $200? Suppose the interest rate is just half that, at 6%. At half the interest rate, does it take twice as long to double your money? Why or why not? How long does it take?
- How many years will it take for an investment to double itself if the interest rate is 10%?An investment will pay $725 in 2,3,4 and 5 years from now. Furthermore, it will pay $4,400 in 9, 10 and 11 years. What is the most you would pay for this investment if you require a 10% return? answer in dollars without the symbol.What is the present value of an investment that will pay $1,000 in one year's time, and $1,000 every year after that, when the interest rate is 8%?
- Assume you are investing $10,000 today for a given amount of time at a given interest rate. What would DECREASE the total amount of money at the end of the investment period?Suppose you can borrow money at an annual interest rate of 8% but can save money at an annualinterest rate of only 5%. If you start with zero capital and if the yearly cash ows of an investment are-1000; 900; 800;-1200; 700should you invest?If Anna’s investment of $900, grows to $1100 over 2 years, what simple interest rate does this represent?
- Suppose you are offered an investment that will allow you to double your money in 9years. You have R20 000 to invest. What is the implied rate of interest?2. Find the future value of OMR10,000 invested now after five years if the annual interest rate is 8 percent. a. What would be the future value if the interest rate is a simple interest rate? b. What would be the future value if the interest rate is a compound interest rate?You are going to invest $5405 in 3 years and $7923 in 6 years. If you expect to earn a return of 8.26%, how much will you have in 10 years? Answer: