Suppose you plan to buy the Blacklist Company by investing Php 5,000 every year to an investment fund paying 8%, compounded annually. How much will you have after 8 years?
Q: You will invest Php. 30,000 into an investment that will earn 10% every year for five years. How…
A: Investment (P) = Php. 30000 Interest rate (r) = 10% Period (t) = 5 Years
Q: If you invest $15,000 in a long-term venture, you will receive $1,100 per year forever. The first…
A: Initial cost (I) = $15000 CF1 = $1100 forever starting after 2 years CF2 = $500 forever every 6…
Q: If you have PhP 5,000.00, which of the following investment alternatives would provide the greatest…
A: We will calculate wealth for each alternative, Part A) 72/100 % = .72% simple interest Value After…
Q: Rainer is planning to invest Php80,000. Bank A is offering 6% compounded semi-annually while bank B…
A: Therefore, the maturity value if the investment done in Bank A is Php107,513.31.
Q: If $10,000 is invested in a certain business at the start of the year, the investor will receive…
A: Computation of present value:Hence, the present value is $1,151.30.
Q: Herb E. Vore is considering investing in a Salad Stop franchise that requiresan initial outlay of…
A: a) I concur with Herb since the franchisor neglecting the time-value of money and in case Herb did…
Q: An investment offers to pay you $8,000 a year for five years. If it costs $28,840, what will be your…
A: YEARS 5 PMT (MONTHLY DEPOSIT) 8000 PRESENT VALUE $28,840 FUTURE VALUE $0
Q: An investment will generate $9,000 a year for 20 years. If you can earn 9 percent on your funds and…
A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…
Q: Rs. 9,000 to deposit. ABC Bank offers 12 percent per year compounded monthly, while King Bank…
A: The given problem can be solved using FV function in excel. FV function computes amount accumulated…
Q: You buy a new piece of equipment for $16,230, and you receive a cash inflow of $2,500 per year for…
A: The internal rate of return (IRR) is the interest rate received for investment with payments and…
Q: you are paying into an investment account that pays 8% compounded annually. If you are making…
A: In the given question we require to calculate the future value from the following details: Interest…
Q: You wish to have an investment that will bring about $50 000 in ten years, and the rate of return is…
A: Value of investments after 10 years=$50,000Rate of return(r)=8%Time(n)=10 years
Q: You are told that if you invest $11,100 per year for 19 years (all payments made at the beginning of…
A: Present Value (PV) is current value of amount to be transacted in future. It is computed…
Q: A company needs to buy a building in 4 years, and must fund the down payment from its profits. The…
A: For availing a loan for an asset, a person is required to pay some amount as down payment. Down…
Q: Suppose Stephen has an account that will grow to $455,000.00 in 21 years. It grows at 6.7% annual…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you…
A: Time value of money is a concept that deals with calculating the actual worth of money at present…
Q: Suppose you have the opportunity to make an investment in a real estate venture that expects to pay…
A: Present value of annuity = P * {1-[1/(1+r)^n]/r} Where, P =Periodic Payment i.e. 750 r =rate of…
Q: You have three options to choose for an investment: (1) Pay 15,000 and you will receive P20,000…
A: We need to find the rate of return for all the three options Let r = Rate of return
Q: roy gross is considering an investment that pays 7.6%, compounded annually. How muchwill he have to…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and…
A: Calculate the net present value as follows:
Q: Your client currently has $7,600 in a 401K investment account. They contribute $200 a month into…
A: Current Value in Account = 7600 Monthly Contribution = 200 Monthly Compounding, Annual Return = 5.3%…
Q: a. What do you get at the end, if you save $100 for 8 years with 15% interest rate?
A: a) Annual saving (A) = $100 r = 15% n = 8 years
Q: An investment will generate 10,000 a year for 25 years. If you can earn 10 percent on your funds and…
A: Present value of annuity=Annuity1-1+Interest rate-Time periodRate
Q: Your company plans to invest $20,000 at the end of each year or years 1 through 5, The company will…
A: Present Value: It represents the present worth of the future amount and is computed by multiplying…
Q: You are evaluating a growing perpetuity product from a large financial services firm. The product…
A: The cash flows that are started immediately after the investment and go on for an infinite time…
Q: Gary King is saving for an Australian vacation in three years. He estimates that he will need $6,000…
A: As per question requirement, person have to invest same amount for next three years, so it is a…
Q: An investment will pay you $10,000 in 10 years, and it also will pay you $400 at the end of each of…
A: The amount to be paid for the investment is calculated as the present value of annuity plus the…
Q: An investment promises to pay $6,000 at the end of each year for the next three years and $4,000 at…
A: Question 1 is the case of ordinary annuity while question 2 is the case of an annuity due as the…
Q: An investment promises to pay 3500 per year for the next 3 years and then 4000 per year for the…
A: Year Income 1 3500 2 3500 3 3500 4 4000 5 4000 Discount rate = 15%
Q: A business sets up a sinking fund so they will have a $46,000.00 to pay for a replacement piece of…
A: A Sinking fund refers to a fund that is kept aside or borrowed for the purpose of paying off a debt…
Q: an investor paid $58000 for an investment.he will get $5780 for every 2 years forever.what is his…
A: Given: Investor paid = $58,000 Two years amount = $5,780
Q: You will invest Php. 30,000 into an investment that will earn 10% every year for five years. How…
A: Investment = Php 30000 Period = 5 Years Interest rate = 10%
Q: What is the present value if the money become Php158, 900 after 5 years of investment using 11.2%…
A: The present value is the present worth of the amount that will be paid or received in the future.
Q: it is desired to save $20,000 by depositing $800 every 3 months in an investment that pays 8%…
A: Annuity means a set of finite number of payments which are the same in size and made in equal…
Q: An investment pays you $1000 at the end of each of the next 3 years. The investment will then pay…
A: Interest rate = 8% Calculation of present value Year Cash inflow PVF(8%,Year) Present value A…
Q: Angel Rowe wants to receive $5,000 each year for the next 20 years. Assume a 8% interest rate…
A: Annuity payments are a series of regular payments that an investor makes into an investment account…
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: An investment promises to pay $5,000 at the end of each year for the next four years and $3,000 at…
A: Annuity payment is the series payment of a certain amount for a particular period of time. Under…
Q: Ken Francis is offered the possibility of investing $2,745 today; in return, he would receive…
A: Interest rate: It can be defined as the percent of the principal loan balance, charged by the lender…
Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300…
A: Formulas:
Q: Sidney makes 10 annual deposits of 5,500 each into an investment account. The interest rate is 6%…
A: Investments are the ways through which money is saved in various financial instruments and accounts…
Q: Your group receives a phone proposal to invest in a new business. Thecaller informs you that it will…
A: The question gives the following information:
Q: You wish to have an investment that will bring about $20 000 infive years, and the rate of return is…
A: According to time value of money concept, the amount of dollar that is received today is more worth…
Q: Assume you are told that by investing $100,000 now, you will receive $10,000 per year starting in…
A: Given information: Investment amount is $100,000 Annual cash flow amount is $10,000
Q: You have Rs. 9,000 to deposit. ABC Bank offers 12 percent per year compounded monthly, while King…
A: Future Value = Deposit Amount * ( 1 + Peroidic rate )Number of periods
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: If you invest sh.100,000 at an interest rate of 15 percent, how much will you have at the end of…
A: Note: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question…
Q: You have recently inherited a sum of $100,000. The current market rate is 5% p.a. and you are…
A: Amount inherited = $100,000 Current Market Rate = 5% Amount expected every year indefinitely = $6000…
Q: You want to invest in a new small business venture. If you invest $10,000, you have a guaranteed…
A: Cash Outflow at Year 0 = $10,000 Cash Outflow at Year 1 = $850 Cash Outflow at Year 2 = $1,200 Cash…
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- If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%Redbird Company is considering a project with an initial investment of $265,000 in new equipment that will yield annual net cash flows of $45,800 each year over its seven-year life. The companys minimum required rate of return is 8%. What is the internal rate of return? Should Redbird accept the project based on IRR?How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
- If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)How much would you invest today in order to receive $30,000 in each of the following (for further instructions on present value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
- Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is the NPV using 8% as the discount rate?Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?Washington-Pacific (W-P) invested $4 million to buy a tract of land and plant some young pine trees. The trees can be harvested in 10 years, at which time W-P plans to sell the forest at an expected price of $8 million. What is W-P’s expected rate of return?
- Buena Vision Clinic is considering an investment that requires an outlay of 600,000 and promises a net cash inflow one year from now of 810,000. Assume the cost of capital is 10 percent. Required: 1. Break the 810,000 future cash inflow into three components: a. The return of the original investment b. The cost of capital c. The profit earned on the investment 2. Now, compute the present value of the profit earned on the investment. 3. Compute the NPV of the investment. Compare this with the present value of the profit computed in Requirement 2. What does this tell you about the meaning of NPV?1. If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years? 2. How much must you invest at 12% interest, compounding quarterly, in order to see your investment grow to P5,000 in 27 months? 3. If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years? 4. You deposited P1,000 in a savings account that pays 8% interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to Quezon City to become a call center agent rather than continue in school, so you close out your account. How much money will you receive? 5. What is the future value of a 5-year ordinary annuity with annual payments of P200, evaluated at a 7.5% semi-annual interest rate? 6. If P100 is placed in an account that requires a rate of return of 4%, compounded quarterly, what will it be worth…