You are considering investing in a security that will pay you ​$5,000 in 32 years.   a.  If the appropriate discount rate is 9 percent​, what is the present value of this​ investment? b.  Assume these investments sell for ​$896 in return for which you receive ​$5,000 in 32 years. What is the rate of return investors earn on this investment if they buy it for ​$896​?

Q: You are planning to deposit $4,200 into a financial investment that will pay annual interest rate of…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Q7: You have just received OMR200M from a bank by requesting a loan. Without any deduction you have…

A: Using future value formula we can get period from formula.

Q: You invest $500 today and an additional investment of $500 three years from today. You expect to…

A: Present value refers to the current value of a sum of money in the future at a specified interest…

Q: You are thinking about purchasing an investment from Get-Rich-Quick Investmemnt company. If you buy…

A: Present value of annuity (PVA) formula: PVA=A×1-11+rmn×mrm A=annuity r=rate n=number of years…

Q: You are thinking about investing $4,558 in your friend's landscaping business. Even though you know…

A: Dear student to calculate the Present worth we have to use the following formula: The present worth…

Q: suppose you are planning to buy a home in 8 years from now that costs you 52387 OMR,  How much…

A: PMT signifies the periodic payment.

Q: You are considering investing in a security that will pay you ​$5,000 in 31 years.  a. If the…

A: FV or Future value = PV or Present value*(1+interest rate)^n PV or Present value = FV or Future…

Q: What are the differences between annuity and PV or FV? 2. You are given two numbers: Smith wants to…

A: Time Value of Money:- A series of payments made at regular intervals is known as an annuity. Regular…

Q: 3. You are considering to invest in a mutual fund with a 4% load and an expense ratio of 0.5%.…

A: The investment in a mutual fund portfolio will be considered as better or fruitful, if the returns…

Q: 6. You are approached by Ms Mare of Pyramid Limited with the following investment proposal. For a…

A: Risk premium means the extra return over and above the risk free rate of return. If any investment…

Q: lease provide step by step explaination You are offered an investment which will cost you $100,000…

A: Using excel RATE function

Q: a) Why is wealth maximization considered as a better measure than profit maximization?

A: Note: As per our guidelines, we can only answer one question at once. Please post other questions in…

Q: 1. You have an investment opportunity that requires an initial investment of GH¢5,000 today and will…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: suppose you are planning to buy a home in 8 years from now that costs you 52387 OMR,  How much…

A: Given:

Q: Compute the present value of each scenario. Show the complete solution. 1. Your mother is expecting…

A: The present value is calculated as per the concept of time value of money. Here, the future value is…

Q: Assume that you currently have $52,385 in the bank. That you are going to receive $585 four times a…

A: Present Value is the current value of the future sum of money at the specific rate of return.

Q: #2 - You expect to receive a payment of $1 million in a year. That annual interest rate is 5%. What…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Investment One safe investment pays 8% per year,and a more risky investment pays 12% per year.a. How…

A: A portfolio of stocks is a combination of 2 or more stock which have different risk and return.…

Q: Assume that you lend $13,647 to a small startup firm that promises to pay a fixed rate for 18 years…

A: Given: Present value = $13,647 Years = 18 Future value = $45,863

Q: An investor paid $58,000 for an investment. He will get $5,780 for every two years (forever). What…

A: Option C. 4.86%

Q: answer the question now its econ answer it now!!!

A: Net benefits refer to the estimation of all the benefits summed up and the sum of all the costs…

Q: . A lady will invest a Php 70,000,000 in a bank that offers a 4 percent annual compounded interest…

A: Calculation are as follows

Q: You are considering investing in a security that will pay you $1,000 in 30 years. a. If the…

A: a. If the appropriate discount rate is 10 percent, what is the present value of this investment?…

Q: Assume you expect to earn 12% annually on your investment account. You already have $33,556.25 in…

A: The present value of a future cash flow is computed by dividing it by a discount factor that takes…

Q: You are considering a safe investment opportunity that requires a $780 investment​ today, and will…

A: Investment (X) = $780 Payment after 2 years (P2) = $870 Payment after 5 years (P5) = $640 Let r =…

Q: 2. Ali wants to choose a better option for making investment, help him to decide which the better…

A: FV=PV(1+r)n Where,FV=Future ValuePV=Present Valuer=rate of returnn=number of years

Q: An investment will pay $100 at the end of each of the next 3 yrs, $200 at the end of yr 4, $300 at…

A: Given information: Cash inflow for next three years is $100 Cash flow for year 4 is $200 Cash flow…

Q: You are offered an investment that will pay you $200 in one year, $400 the next year, $600 the next…

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

Q: Quantitative Problem 2: Today, you invest a lump sum amount in an equity fund that provides an 10%…

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

Q: . What is my yield?

A: The formula for yield: (cash flow at endcash flow at the start-1)*yeardays YIELD:…

Q: D)Consider an investment that pays Rs. 6,880 in interest every year plus 86,000 when it matures in…

A: The buying price of the investment is the price which is required to be paid for starting an…

Q: Suppose you borrow $38499.71M when financing a gym with a cost of $87624.83M. You expect to generate…

A: Cost of capital- From the investor's perspective, cost of capital is the minimum return that the…

Q: An investor is looking to invest OR.70,000 for one year. He requires a real return of 12%. The…

A: Nominal rate of return = (1+real return ) * (1+ inflation rate ) - 1

Q: ow your solution The present worth of $5,000 in year 3, $10,000 in year 5, and $10,000 in year 8 at…

A: In this we need to find out the present value of all options.

Q: A new investment opportunity for you is an annuity that pays $560 at the beginning of each year for…

A: The question gives the following information:

Q: You want to invest $18,000 and are looking for safe investment options. Your bank is offering you a…

A: Given: Invested amount = $18,000 Nominal rate = 6%

Q: ht a condo for $200,000 financing it with a $40,000 down payment of your own funds and a $160,000…

A: Return on Equity (ROE) is generally net income divided by equity, while Return on Assets (ROA) is…

Q: Assume you can earn 8.6% per year on your investments. a. If you invest $110,000 for retirement at…

A: The major decisions that an individual considers while setting up the retirement goals are the total…

Q: What is the present value of an investment with the following cash flows? Year 1  $14,000 Year 2…

A: Solution:- Present value means the value in today’s terms after discounting the future cash flows to…

Q: How much would you be willing to pay today for an investment that will pay you $2,500,000 in 30…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: What is the current value of a security that pays P165,500 per year for 10 years if similar…

A: Annuity means where regular payment is made at the end of regular period and full amount with…

Q: Cornel offers to pay you $5,000 in 3 years and wants to borrow some money from you now in return.…

A: Given: Future value = $5,000 Years = 3 Cost of capital = 8%