Your objective is to have $25,650 in exactly 15 years. Today you invest $9,000 in a Schwab ‘Differential Rate’ stock fund. For the next 7 years Schwab guarantees that your investment will earn a 6.1 % annual interest rate. To achieve your objective, during the final 8 years the Schwab fund must pay an annual interest rate of:

Q: Billy has 44,000 dollars to invest in a stock market. He wants to be advised on this matter, by a…

A: Effective annual interest rate(EAR) can be calculated by using this equation EAR =1+imm -1 where…

Q: Maryse has invested $1000 into mutual fund at a 5% annual rate of return, compounded daily. What are…

A: Nominal interest rate is the stated interest rate on the fund, whereas effective interest rate is…

Q: Kershaw wishes to accumulate $2 million by the end of 40 years by making equal annual end-of-year…

A: Amount to be saved(FV) is $2million Time period(NPER) is 40 Years Rate is 10%   To Find: Amount to…

Q: A person invests $50,000 in an investment that earns 6 percent. If $6,340 is withdrawn each year,…

A: Given: Present value = $50,000 Interest rate = 6% Amount = $6,340

Q: You are considering investing $1,000 in an investment fund at the end of every quarter for the next…

A: As per the time value of money concept, a certain amount held today is worth more than holding the…

Q: To raise $6,000,000 to expand into new markets, a very successful laptop manufacturing company…

A: Yield to maturity (YTM) is the discount rate or the rate of return that an investor earns by holding…

Q: .The Janus Enterprise fund has as of April 2013 a 10-year average return of 12.54%. If Bobby Sue…

A: Future Value of Annuity = Annuity * [ ( 1 + Periodic rate)number of periods - 1 ] / Periodic rate

Q: You invest $10,000 in Rapid Growth Funds, which appreciate by 1% per year, with yields reinvested…

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

Q: You are told that if you invest $11,100 per year for 19 years (all payments made at the beginning of…

A: Present Value (PV) is current value of amount to be transacted in future. It is computed…

Q: A pension fund is expected to produce a cash flow of $1,000 at the end of the upcoming year. This…

A: Here, Year 1 cash flows is $1000. This cash flow are increasing 10% for five years and after five,…

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

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: interest dues on it. Three years from this withdrawal you start taking Php 20,000 per year out of…

A: Solution:- Calculation of Schedule of Investment fund ( Amount in Php) Year Opening balance…

Q: You expect to receive $30,000 at graduation in two years. You plan on investing it at 9 percent…

A: We have to calculate period required and add two years to that .

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: If we were to invest $10,000 in an S&P 500 index fund, pay 0.2% annual fees,and add $100 a month…

A: Computation:

Q: Larry James is planning to invest $25,400 today in a mutual fund that will provide a return of 0.10…

A: We need to find the future value of investment of Mr.Larry James. Future value is the amount reccive…

Q: Robert Williams is planning to invest $30,000 today in a mutual fund that will provide a return of 8…

A: Future Value  = Present Value * (1+rate)^n Where, rate =8% n = no. of years i.e. 10

Q: An investment opportunity has the following characteristics: payments of $10,000 will be made to you…

A: In order to find the purchase price of investment opportunity the present value of the opportunity…

Q: An investment company wants to establish a sinking fund to pay off debts of $85 million which come…

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

Q: You have invested P100,000 in a mutual fund that promises to pay 8% each year. You will keep this…

A: Future value of the present amount With present value (PV), interest rate (i) and period (n), the…

Q: An individual expects his return on an investment to be $10,000 the first year and to increase…

A: Therefore, the present worth is $57,595.10.

Q: How much would you be willing to pay for this investment if you required a 12 percent rate of…

A: Present Value of Annuity: It represents the present worth of the future annuity stream of cash…

Q: Sevim wants to create a savings of 95,000 TL at the end of 30 years. For this purpose, it plans to…

A: This question had two parts we had to find future value of both parts.

Q: You are planning to save for retirement over the next 30 years. To save for retirement, you will…

A: Given, we are caluclating stock and bond  balance after 25 years by using excel

Q: If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and…

A: Calculate the net present value as follows:

Q: If P20,000 is invested in a fund that pays 10% compounded annually, how much money will be in the…

A: Answer -    Part 1 -  If P20,000 is invested in a fund that pays 10% compounded annually, how much…

Q: If Quail Company invests $46,000 today, it can expect to receive $12,000 at the end of each year for…

A: Net present value method is used to evaluate the investment projects. We can evaluate the project by…

Q: Today, you invest P 100,000 into a fund that pays 25% interest compounded annually. Three years…

A: With the time value of money application, we compute the amount at each even of deposit and…

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest $700 a…

A: Using excel FV and PMT function

Q: If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years? How…

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

Q: c) This same trader has decided to set up a sinking fund for the purpose of purchasing a truck in 2…

A: Sinking Fund is a fund that is kept aside or borrowed to pay off a debt or a loan. It helps the…

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

A: Computation:

Q: . An investor buys a 150 TL investment fund from the bank and sells it for 165 TL after 25 days.…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans…

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

Q: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years…

A: Compound interest formula : Final amount = Principal (1+interest rate/number of compounding…

Q: A no-load (commission-free) mutual fund has grown at a rate of 10% compounded annually since its…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: In order to have ₱1 million in a fund at the end of 15 years, how much must be deposited in the fund…

A: Amount to be deposited per quarter can be calculated using PMT function in excel. PMT(rate, nper,…

Q: You buy a mutual fund for $1,000. It annually distributes $60 for eight years, after which you sell…

A: Expected rate of return can be described as the total profit or loss on a particular investment over…

Q: An investment promises to pay $7,000 at the end of each year for the next six years and $3,000 at…

A: In the given case, an investment will pay $7,000 at the end of each year for the next six years and…

Q: lustin has already saved $11,300 in his investment account today and he plans to continue to add on…

A: In this we need to calculate the future value factor and than find out the semiannual payment…

Q: An investor is considering an investment that will pay $2,150 at the end of each year for the next…

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

Q: Suppose you are planning for retirement. At thebeginning of this year and each of the next 39…

A: Retirement fund is used for saving some portion of income by people for their retirement. It is also…

Q: The manager has 5 employees whose combined salaries through the end of this year are $300,000. If he…

A: The current worth of funds to be received in the future with one or more payments, discounted at a…

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…

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.