You are considering an investment that will pay you $1,200 per month for three years. The first payment occurs one month from today. What is the present value of this investment if the annual percentage rate is 12 percent?

Q: You plan to invest $50,000 today at an annual interest rate of 12% over 5 years. What the future…

A: Following details are given in the question: Present value (Investment today) = $50000 time period =…

Q: You deposit $19,000 today in an investment account and the annual rate of return is 12%, what will…

A: Formulas: Future value = Present value *(1+rate)^years

Q: If you invest $1,000 each month for five years, what will be the value of the investment after five…

A: The below formula can be used to calculate future value:

Q: You have an investment opportunity that requires an initial investment of $5,500 today and will pay…

A: The acronym IRR stands for internal rate of return. It shows the actual return wherein the present…

Q: How much should an investor pay to receive $12,000 three years (36 months) from now, assuming that…

A: RETURN 9%/12 0.75% NPER (n)  36 PMT 0 FUTURE VALUE 12000     Return= Rate

Q: You require an annual return on your financial investments of 8% per annum. What would you be…

A: Semi annual payment (P) = £1,000 Annual interest rate = 8% Semi annual rate (r) = 8%/2 = 4% Period =…

Q: Today you have $100,000 in your investment account, which will grow by 7.5% annually. If you keep…

A: Using excel NPER function

Q: If you invest $15,000 every year and expect to increase your investment by 6% each year for the next…

A: Annual investment (A) = $15000 Growth rate (g) = 6% r = 7% n = 20 years

Q: You have an investment that will pay you 1.38 percent per month. How much will you have per dollar…

A: Future Value can be calculated using following formula FV = PV* (1 + r / n)nt Where, PV = Present…

Q: You will receive $4,000 three years from now. The discount rate is 10 percent.  a) What is the…

A: In the given question we need to compute the value of investment after two years and one year from…

Q: An investor has the possibility of a programmed investment that yields an effective interest rate of…

A: The future value of an annuity can be calculated using the FV Function.

Q: How much will I have 8 years from now, if I will invest $10398 at the end of each three months for…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: You need $32,000 at the end of 10 years. If you can earn 0.625% per month, how much would you need…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: An investment offers $6,100 per year for 15 years, with the first payment occurring today. If the…

A: present value of annuity due formula: PVADUE=A×1-11+rnr×1+r where, A=annuity r=rate n=number of…

Q: Would you prefer making a $25,000 investment that will earn interest at the rate of 6 percent…

A: Given: Investment amount is $25,000 The rate of 6 percent The calculation is shown below as,

Q: If the initial investment is $200,000, what would be the nominal annual rate of interest compounded…

A: Interest is the cost of borrowing the money.

Q: An investment offers $8800 per year for 14 years with the first payment occuring one year from now.…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: f you invest $9,000 today, how much will you have: a. In 2 years at 9 percent? b. In 7 years at 12…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: You have $12,500 you want to invest for the next 20 years. You are offered an investment plan that…

A: Amount we will have at the end of 20 years is future value of current investment

Q: A 10-year investment will pay $2,500 at the end of this year, and the payments will grow at a rate…

A: Answer: Given data, Future value = $2,500 Required rate of return = 15% Paymets grow @ 5% per year

Q: If 14700 dollars is invested at an interest rate of 9 percent per year, compounded semiannually,…

A: Using excel FV function

Q: %.

A: Present Value = First cashflow + Cash flow * PVAF(r, n)                        = First cashflow +…

Q: What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?

A: Future value is the value of assets at a future date given a growth rate. This is used for financial…

Q: Jones expects an immediate investment of $57,466 to return $10,000 annually for eight years, with…

A: Annuity payments usually occurred in case of insurance contract where a regular sum of amount to…

Q: An investment promises to pay you $80 per year for twenty years and, in addition, at the end of the…

A: The problem is to find the price that will be willing to be paid today for cashflows to be generated…

Q: You expect to receive $14,000 at graduation in two years. You plan on investing it at 8 percent…

A: Computation:

Q: I am investing $50,000 right now and will add $8,000 each year for the next 10 years. The expected…

A: Investment = 50,000 Annual Payment = 8000 Time Period = 10 years Rate of return = 6.5% Future Value…

Q: If you invest $12,000 today , how much will you have: a) In 6 years at 7 percent? b) In 15 years…

A: Investment amount = $12,000 Time period = 6 years  Rate of interest = 7% In this, the future value…

Q: an investment offers 3850 per year for 15 years, with the first payment occurring one year from now.…

A: Here, Annuity Amount is 3850 Interest Rate is 6%

Q: How many years must you wait for your $4,380 investment to grow to $7,700 if you invest at 5 percent…

A: Future Value: The future value is the value of annuity or the sum lump amount after a certain period…

Q: You have an investment that will pay you .63 percent per month. How much will you have per dollar…

A: Amount = Principal 1+r100n where Principal = invested amount Amount  = principal + interest r = rate…

Q: You expect to receive $10,000 at graduation in two years.  You plan on investing it at 11 percent…

A: Future amount can be calculated as follows: = Present Value * (1 + rate)^ periods

Q: An investment  opportunity requires a payment of $750 for 12 years, starting a year  from today. If…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: How much is the present value of your investment if you invest P2,000 semi-annually at the start of…

A: The present value is the value of the sum received at time 0 or the current period. Given…

Q: You plan to invest $200,000 today at an annual interest rate of 12% over 10 years. What will be the…

A: Following details are given in the question: Present value (Investment today) = $200000 time period…

Q: Tanya is considering an investment that will require an initial payment of 400,000 and additional…

A: Net present value is a discounted cash flow (DCF) method used for evaluating investment proposals.…

Q: You are going to receive a payment of $80 at the end of each year for the next 20 years. If you…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: An investment will pay $25 per year (indefinitely), starting in one year’s time. The annual payments…

A: Given, Annual payment = $25 per year The growth rate of Annual payments = 3% Price of the investment…

Q: What would you pay for an investment that pays you $31000 at the end of each year for the next…

A: Note: Amount paid for the investment will be equal to the present value of amount to be received in…

Q: An investment will give you monthly payments of $890 for 9 years. If your required return is 8.13%,…

A: Monthly payment (M) = $890 n = 9 years = 108 months r = 8.13% per annum = 0.6775% per month

Q: An investment is expected to pay a return of $5,250 semi-annually (i.e. at the end of each six…

A: Effective interest rate is the return an investor will earn during the span of their investment…

Q: If you invest $9500 per period for the following number of periods,  how much would you have in each…

A: Calculation of Future value of annuity: Answer: Future value annuities are $232,965.77 and…

Q: How much is the present value of your investment if you invest P2,000 semi-annually at start of…

A: The present value of annuity due is the present value of a series of cash payments that are expected…

Q: A pension fund is making an investment of $100,000 today and expects to receive $1,600 at the end of…

A: The internal rate of return is the rate at which the present value of cash inflows is equals to the…