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- An investment pays $200 at the end of Year I. $250 at the beginning* of Year 2. $387 at the end of Year 4. and $500 at the beginning of Year 6. If other investments of equal Mk earn 7.5% annually. what will be this investments present value and future value?Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.An investment will pay $600 at the end of each of the next 2 years, $700 at the end of Year 3, and $1,000 at the end of Year 4. What is its present value if other investments of equal risk earn 6 percent annually? a. $1,821.82 b. $1,913.83 c. $2,297.07 d. $2,479.86 e. $2,735.85
- Consider the followingalternatives: i. $120 received in one year ii. $220 received in five years iii. $350 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 7% per year. b. What is your ranking if the interest rate isonly 2% per year? c. What is your ranking if the interest rate is 14% per year?Assume that at the beginning of the year, you purchase an investment for $6,300 that pays $130 annual income. Also assume the investment's value has increased to $6,900 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return % b. Is the rate of return a positive or a negative number? Positive NegativeQ1 (A). An investment of $100 produces rate of return as follows In year 1: a gain of 10 percent In year 2: a loss of percent In year 3: a loss of 8 percent In year 4: a gain of 3 percent. Calculate the value of the investment at the end of the fourth year and calculate the mean annual rate of return.
- 1. The return of an investment is given in the following table: Year Balance RM5000 1 RM5375 RM5697.50 3. RM5925.40 (a) Find the effective rate of interest for each of the three years. (b) Find the equivalent level effective rate of return over the three-year period. (c) If a principal of RM7000 is invested at time t = 0, calculate the balance of the investment after 3 years.Assume that at the beginning of the year, you purchase an investment for $7,200 that pays $100 annual income. Also assume the investment's value has decreased to $6,800 by the end of the year. (a) What is the rate of return for this investment? (Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.) Rate of return % (b) Is the rate of return a positive or negative number? Positive O Negative3. An investment of 151,155.00 yields P37,238.49 at the end of the 3rd year, P44,774.27 at the end of 6th year, and P72,085.50 at the end of the 10th year. What is the rate of return in the investment?
- Find the annual worth (AW) of the following investments (from year 1 to year 20) if you invest $600 per year in years 6 to 12; and then increase the investment by $200 per year from year 13 to year 20 [i.e., cash flow in year 13 becomes $800, in year 14 becomes $1,000, ... etc.]. The interest rate is 10% per year. i 10% P/F A/P A/F P/G (F/P,i,n) = (1 + i)" 1 0.9091 1.1000 1.0000 0.000 2 0.8264 0.5762 0.4762 0.826 (1 + i)" –1 i(1 + i)" 3 0.7513 0.4021 0.3021 2.329 (P/A,i,n) = 4 0.6830 0.3155 0.2155 4.378 0.6209 0.2638 0.1638 6.862 6 0.5645 0.2296 0.1296 9.684 (1 + i)" –1 i 7 0.5132 0.2054 0.1054 12.763 (F/A,i,n) = 8 0.4665 0.1874 0.0874 16.029 %3D 9 0.4241 0.1736 0.0736 19.421 10 0.3855 0.1627 0.0627 22.891 26.396 29.901 (1 + i)" – in – 1 (1 + i)" 11 0.3505 0.1540 0.0540 (P/G,i,n) = - %3D 12 0.3186 0.1468 0.0468 13 0.2897 0.1408 0.0408 33.377 14 0.2633 0.1357 0.0357 36.800 (A/G.im) = } -+ -1 15 0.2394 0.1315 0.0315 40.152 n (1 + i)" – 1 16 0.2176 0.1278 0.0278 43.416 17 0.1978 0.1247…Consider the following alternatives: i. $100 received in one year ii. $220 received in 5 years iii. $330 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 7% per year. b. What is your ranking if the interest rate is only 6% per year? c. What is your ranking if the interest rate is 19% per year? a. Rank the alternatives from most valuable to least valuable if the interest rate is 7% per year. First, calculate the present value (PV) of each alternative: The PV of $100 received in one year if the interest rate is 7% per year is $ (Round to the nearest cent.)An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next 4 years. Following is a table for the present value of $1 at compound interest: Year 1 2 3 4 12% 0.943 0.909 0.893 0.870 0.890 0.826 0.797 0.756 0.840 0.751 0.712 0.658 0.792 0.683 0.636 0.572 0.747 0.621 0.567 0.497 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 15% 1 0.943 0.909 0.893 0.870 2 1.833 1.736 1.690 1.626 3 2.673 2.487 2.402 2.283 4 3.465 3.170 3.037 2.855 4.212 3.791 3.605 3.353 5 5 6% 10% % 15% What is the investment's internal rate of return?