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%

Answered: You are considering investing in a…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 7Q

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A You are considering investing in a security that will pay you $1000 in 30 years.
1. If the appropriate discount rate is 10%, what is the present value of this investment?
2. 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%

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