promises to pay you a constant $300 every six months, indefinitely. Your required annual rate of return is 6%, compounded semi-annually; assume that this rate will be the same indefinitely. What is the present value of this investment three years from now? (Hint: You cannot use a financial calculator to solve this problem.)
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A2-5c
This question consists of three parts. When performing the calculations, keep as many decimal places as you can for intermediate answers, but round your final answers to two decimal places.
c. promises to pay you a constant $300 every six months, indefinitely. Your required annual
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- Suppose that you wish to save the amount indicated below. You will make the first investment one month from now. opportunity how much will you need to invest at the end of each month to reach your savings goal. Assume that you the end of the term indicated below. Round your final answer to two decimals. Savings goal: Frequency of investment: Term: Expected return Monthly investment $ 776,223.00 Monthly 13 Years from now 9% APRa. What is the value of an investment that pays $15,000 every other year forever, if the first payment occurs one year from today and the discount rate is 8 percent compounded daily? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the value today if the first payment occurs four years from today? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Value today b. Value todayuestion 1: Solve the following TVM problems using Excel formulas. You MUST use Excel formulas (FV or PV) to receive credit. ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? C. Suppose you invest $ 570 monthly. What is the future value of the investment in 29 29 years, if interest at + 5% is compounded monthly? 5 6 7 8 19 20 21 22 23 24 25 26 27 28 29 Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A 国 W X
- An investment promises two payments of $570, on dates three and six months from today. If the required rate of return on the investment is 4.7%:What is the value of the investment today? (Do not round intermediate calculations and round your final answer to 2 decimal places.Value today $.An investment offers $6,800 per year for 20 years, with the first payment occurring one year from now. a. If the required return is 7 percent, what is the value of the investment today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What would the value today be if the payments occurred for 45 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What would the value today be if the payments occurred for 70 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What would the value today be if the payments occurred forever? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value b. Present value C. Present value d. Present valueIf you invest $9,700 per period for the following number of periods, how much would you have received at the end? Use Appendix C. (Round "Factor" to 3 decimal places. Round the final answers to the nearest whole dollar.) a. 11 years at 9 percent Future value $ b. 16 years at 11 percent Future value $ c. 30 periods at 10 percent Future value $
- If you invest $9,400 per period for the following number of periods, how much would you have received at the end? ( Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.) a. 12 years at 6 percent. Future value $ b. 18 years at 8 percent. Future value $ c. 25 periods at 16 percent. Future value $Compute the future value of $536 invested every year if the appropriate rate is 11.2% and you invest the money for 4 years with the first payment made one year from now. Answer: $Blank 1 NOTE: Do not round in between solutions. Final answer round to two decimal places. No need to put comma and UOM.Question 2. Your crazy banker presents another investment opportunity for 2022, where you are told that for the first six months of the year you will have an APR of r1 compounded monthly, and for the second half of the year the APR will be r2 compounded monthly. Assume that interest compounds on the 28th day of each month. The banker tells you that for the first six months of the year the effective annual rate is a1 = 6%, but they refuse to divulge the value of r1 directly. You choose to invest $1000 on January 1, 2022, and decide to withdraw all funds from the account on June 30, 2022. What was the value of your account upon withdrawal? The banker then informs you that for the last six months of the year the effective continuous rate is c2 = 4%. You decide that it would be nice to have exactly $2000 in this account on December 15, 2022. What amount of money do you need to invest in this account on July 1, 2022, in order to accomplish this goal?
- An investment offers $9,200 per year for 17 years, with the first payment occurring one year from now. Assume the required return is 12 percent. a. What is the value of the investment today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What would the value be if the payments occurred for 42 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What would the value be if the payments occurred for 77 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What would the value be if the payments occurred forever? (Do not roundAn investment offers $5,300 per year, with the first payment occurring one year from now. The required return is 6 percent. a. What would the value be today if the payments occurred for 15 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What would the value be today if the payments occurred for 40 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What would the value be today if the payments occurred for 75 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What would the value be today if the payments occurred forever? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)A2-4c This question consists of four main parts. When performing the calculations, keep as many decimal places as you can for intermediate answers, but round your final answers to two decimal places. c. You are saving $200 per month at 6% annual percentage return (APR) with monthly compounding. How many years will it take for your savings to accumulate to $10,000? (Hint: Use the financial calculator for this calculation, and clearly show the inputs you use.)