When I was considering what to do with my $10,000 lottery winnings, my broker suggested that I invest half of it in gold, the value of which was growing by 9% per year, and the other half in certificates of deposit (CDs), which were yielding 6% per year, compounded every 6 months. Assuming that these rates are sustained, how much will my investment be worth in 6 years? (Round your answer to the nearest cent.)

Q: You want to be able to withdraw $4000 from an account at the end of each 6-month period (that is,…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

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A: Initial cost (I) = $15000 CF1 = $1100 forever starting after 2 years CF2 = $500 forever every 6…

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A: Computation of present value:Hence, the present value is $1,151.30.

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A: Formula FV = CF0*(1+R)3+CF1*(1+R)2+CF2*(1+R)1 Where FV - Value of account after 3 years R - Interest…

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A: 1)Calculate the present and future value of an investment: Excel workings:

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A: In this question one has to find the future value of the project or account.

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A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

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A: Initial investment (X) = 1000 The investment doubles every 4 years. Let the interest rate = r

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A: Calculation of effective annual rate (EAR): Answer: Effective annual rate (EAR) is 8.16%

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A: Future value formula Used for Calculation: FV= PV(1+r)^n PV = present value = 7500 r= rate of…

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A: Formulas: Future value = amount*((1+rate)^years - 1) / Rate

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A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Michael wants to make an investment so that he would receive $4000 every 6 months for 5 years, with…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask the…

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A: Time value of money techniques helps us to find the values of the deposits at different time…

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A: given,r = 6.85% A-2= $3200 A0= $5000 A1= $3500

Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…

A: The effective annual rate is the actual rate earned after considering the compounding periods in a…

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A: In this we need to calculate the present value of all cost and benefits.

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A: Cash flow diagram:

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A: Value of perpetuity is present value of cash flow for perpetuity.

Q: t. How much would be the total value of your investment at the maturity date?

A: Future value = Present value (1 + rate)^periods Future value = 1000 (1 + 0.035)^5 Future value =…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.