Using the given situations, compute for the future value at the end of term of each scenario. 1. Your mother invested Php18 000 in government securities that yields 6% annually for two years.
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- 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 annuityYou put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.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%
- compute for the future value at the end of term for each scenario using the future value of money. Your mother invested ₱18,000 in government securities that yield 6% annually for two years.Compute the present value of each scenario. Show the complete solution. 1. Your mother is expecting to get Php18 000 in two years’ time after investing in government securities that yield 6% annually.An individual expects his return on an investment to be $10,000 the first year and to increase exponentially at 15% each uear for the next five years. Using a 5% annual interest rate, compute the present worth of the investment using both the year-end and month-end conventions.
- Mitchell Investments has offered you the following investment opportunity: ■ $6,000 at the end of each year for the first 5 years, plus ■ $3,000 at the end of each year from years 6 through 10, plus ■ $2,000 at the end of each year from years 11 through 20. How much would you be willing to pay for this investment if you required a 12 percent rate of return?Suppose you inherited Php275,000 and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years?If you have PhP 5,000.00, which of the following investment alternatives would provide the greatest ending wealth for your one-year investment? A. 72/100 percent simple interest B. 7/10 percent compounded semi-annually C. 7/10 percent compounded quarterly D. 7/10 percent compounded annually
- Bill is considering investing $450 at the end of each month in a fixed incone instrument. He will receive $27,000 at the end of four years. If interest is compounded monthly, what is the effective annual rate of return on the investment. A. 22.3% B. 15.1 % C. 11.6 % D. 11.1 % E. 13.6 %Kershaw wishes to accumulate $2 million by the end of 40 years by making equal annual end-of-year deposits over the next 40 years. If he can earn 10 percent on his investments, how much must he deposit at the end of each year? Must Identify variables and use excel m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FVThomas Taylor plans to invest $24,300 a year at the end of each year for the next seven years in an investment that will pay him a rate of return of 9.1 percent. How much money will Thomas have at the end of seven years? (Round factor values to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.) Future value of investment $