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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 annuityIf 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%Suppose you deposit $650 per month in a mutual fund that is expected to bear 10% interest compounded monthly. If you do this faithfully, how much will your account be worth after 29 years? Round your answer to the nearest whole number.
- If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years? How much must you invest at 12% interest, compounding quarterly, in order to see your investment grow to P5,000 in 27 months? 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? 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?What is the present value of a security that will pay P290,000 in 20 years if securities of equal risk pay 5% annually? 5. What is the future value of a 5%, 5-year ordinary annuity that pays P8,000 each year? If this was an annuity due, what would be its future value?Larry James is planning to invest $25,500 today in a mutual fund that will provide a return of 0.08 each year. What will be the value of the investment in 10 years? Round to two decimal places.
- Suppose you save $500 per year at the end of each year for 15 years and earn 8.25% interest per year. What is the present value of this annuity? Suppose that the constant and perpetual cash flow is $1,000 and the discount rate is 8%. What is the value of this perpetuity?Suppose Karlem invested P20,000 for five years with simple annual interest of 10%. What is the future value of this investment?A You are considering investing in a security that will pay you $1000 in 30 years. If the appropriate discount rate is 10%, what is the present value of this investment? Assume these investments sell for $365, in return for which you receive $1000 in 30 years, what is the rate of return investors earn on this investment if they buy it for $365? b What is the accumulated sum of each of the following streams of ordinary annuity payments? $35 per half-year for three and a half years at 14% p.a. compounded half- yearly. $25 a year for three years compounded annually at 2%. $500 a year for 10 years compounded annually at 5%
- Assume that you are offered an annuity that pays $100 at the end of each year for10 years. You could earn 8% on your money in other investments with equal risk.What is the most you should pay for the annuity? If the payments began immediately,how much would the annuity be worth? ($671.01, $724.69)"Joey is considering investing P200,000 in an investment that will have a maturity value of P1,000,000 in 10 years. If the compounding period is quarterly, what is the annual rate of return earned on the investment?" 4% 8% 16% 17%Suppose an investment will pay $21,000 in 29 years from now. If you can earn 11.35% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?
