Samantha has holdings of 250 troy ounces of platinum, currently valued at $815 dollars per ounce. She estimates that the price of platinum will rise to $850 per ounce in the next year. If the interest rate is 8%, should she sell the platinum today?
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Samantha has holdings of 250 troy ounces of platinum, currently valued at $815 dollars per ounce. She estimates that the price of platinum will rise to $850 per ounce in the next year. If the interest rate is 8%, should she sell the platinum today?
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- Suppose Kay inherits $250,000, which she invests today at a rate of return of 9 percent compounded annually. How much will Kay's investment be worth in 25 years?Ronnie invests $55,000 in a food truck (which has a lifespan of two years) , the net cash flows of the business are +$30,000 each year, for the next 2 years. The interest rate is 10%. The NPV of this investment is negative so she should invest. True or FalseLuis wants to have $2,000,000 in net worth when he retires. To achieve this goal, he plans to invest $10,000 each year (starting one year from now) into an account that earns 10% interest compounded annually. The amount of time before Luis can retire as a multimillionaire is how many years?
- Mrs. Santos placed an amount of 9,700 Php in an investment that pays an interest rate of 12%, compounded semi-annually. She wants her money to grow to a total amount of 50,000 Php. Then what is the total amount or the future value? And After how many years will his investment grow from 9,700 to 50,000?sarah allen is 20 years old and plans to make the following investments beginning next year. she will invest $5,300 in each of the next three years and will then make investments of $5,800, $5,900, $6,000, and $6,200 over the following four years. if the investments are expected to earn 12.30 percent annually, how much will sarah have when she turns 30? (round answer to 2 decimal places, e g. 15.25. do not round factor values.)Mary has $55,000 in a brokerage account, and she plans to deposit an additional $8,500 at the end of every future year until her account totals $300,000. She expects to earn 15% annually on the account. How many years will it take to reach her goal?
- Rachel owns 100 percent of a gift shop with an equity value of $150,000. If she keeps the shop open 5 days a week, EBIT is $75,000. If the shop remains open 6 days a week, EBIT increases to $92,000 annually. Rachel needs an additional $50,000 which she can raise today by either selling stock or issuing debt at an interest rate of 7 percent. The principal amount would be repaid in equal annual payments at the end of the next five years. Ignore taxes. What will be the cash flow for the year to Rachel if she issues debt, remains open 5 days a week, and distributes all the residual cash flow to the shareholders? Multiple Choice $46,125 $61,500 $65,000 $71,500 $67,880How much money will Slats Slattery accumulate at the end of twenty years if he presently has $175,000 and plans to invest $50,000 per year for the next ten years? He can earn 4% on his investments.Ten years ago, Hailey invested $2,000 and locked in a 9 percent annual interest rate for 30 years (ending 20 years from now). Aidan can make a 20-year investment today and lock in a 10 percent interest rate.How much money should he invest now in order to have the same amount of money in 20 years as Hailey?
- Darwin has a capital of $ 7100 which he invests for 3 years at 7.6 % p. a. a)How much will he receive come maturity time if the interest is compounded annually? Round to the nearest 100th. b)How much will he received come maturity time if the interest is compounded semi-annually? Round to the nearest 100th . c)How much will he receive come maturity time if the interest is compounded quarterly? Round to the nearest 100th . Then, George Green wishes to invest $ 8000 that he saved from his summer job. His bank offers 3.75 % for a one-year term investment or 3.5 % for a six-months term. a)How much will George receive (capital plus interest) after one year if he invests at the one-year rate? Round to the nearest one. b)How much will he receive (capital plus interest) after one-year if he invests for six months at a time at 3.5 % each time? This means George took the interest from the first investment transaction and included it in the principal for the second transaction. Round to…Cardo invested a certain amount at 20% simple interest per year. After 8 years, the interest she received amounted to Php40,000. How much did he invest?John is considering the purchase of a lot. He can buy the lot today and expects the price to rise to $15,000 at the end of 10 years. He believes that he should earn an investment yield of 8 percent compounded annually on his investment. The asking price for the lot is $7,000. Should he buy it? What is the internal rate of return compounded annually on the investment if Johnpurchases the property for $7,000 and is able to sell it 10 years later for $15,000?