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I receive $10,000 a year in perpetuity. The original investment was
$100,000. What is my
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- How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityIf my balance is $85,000 and I contribute $25,000 p.a for the next 35 years earning a rate of 5%, what will be my final balance?
- our father paid $10,000 (CF at t = 0) for an investment that promises to pay $850 at the end of each of the next 5 years, then an additional lump sum payment of $12,000 at the end of the 5thyear. What is the expected rate of return on this investment?Ms. Cristiana Piccini is valuing an investment that pays her $27,000 per year for the first ten years, $35,000 per year for the next ten years, and $48,000 per year the following ten years (all payments are at the end of each year). If the appropriate annual discount rate is 9 percent, what is the value of the investment to Ms. Cristiana Piccini today?Tran Lee plans to set aside $1, 800 a year for the next six years, earning 4 percent. What would be the future value of this savings amount?
- Here are two ways of investing $40,000 for 25 years. After 25 years, how much more will you have from the lump-sum investment than from the annuity?Your godmother put $2,000 in a trust fund for you. In 10 years the fund will be worth $5,000. What is the rate of return on the trust fund?Mai Tran plans to set aside $3,200 a year for the next six years, earning 5 percent. What would be the future value of this savings amount
- You receive $100 today, $200 in one year, and $300 in two years. If you deposit these cash flows into an account earning 12 percent, the value in the account three years from now is?If your trust fund promises to pay you $25, 000 on your 24th birthday (6years from today) and earns 9% compounded annually, then what is the trust fund's present value?Angela has a trust fund that will mature in three years with a value of $15,000. If this trust fund is earning a 5% rate of return annually, what is the value of this trust fund in today’s dollars (i.e., the trust fund’s present value)?
