You require an annual return on your financial investments of 8% per annum. What would you be prepared to pay for an annuity that offered you £1,000 every six months for the next two years?
Q: You plan to invest $50,000 today at an annual interest rate of 12% over 5 years. What the future…
A: Following details are given in the question: Present value (Investment today) = $50000 time period =…
Q: You deposit $19,000 today in an investment account and the annual rate of return is 12%, what will…
A: Formulas: Future value = Present value *(1+rate)^years
Q: An investor has purchased an investment which offers him 30 annual payments of dollar 1,200 per…
A: To find the present value of the investment, we will first define where the payments are made. We…
Q:
A: As per the given information: Amount of loan - $164,000 Rate of interest - 8% Period - 11 years To…
Q: (Calculating Annuities) You are planning to save for retirement over the next 30 years. To do this,…
A: Stock account investment per month (S) = $700 Bond account investment per month (B) = $300 Stock…
Q: an investor paid$58000 for an investment. he will get$5780,for every 2 years(forever). what is his…
A: 5780= [58000×{(1+r)^no. of years)}]-58000 5780= [58000×{(1+r)}]-58000 [{(5780+58000)÷58000}-1]÷2…
Q: An investor deposits a sum of Rs 100,000 in an investment company with a promise of a rate of return…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: If you invest one cent on november first at a daily rate of interest of 100% for 30 days, what would…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: Suppose you invest $3,500 today, compounded monthly, with an annual interest rate of 8.50%. What…
A: When the interest rate compounds monthly, the monthly interest rate should be considered i.e.…
Q: You can invest $ 35,000 today. This investment offers you a fixed annual return, computed monthly…
A: Perpetuity is the series of payments at fixed intervals for an infinite time period. The amount of…
Q: If you invest $1,000 each month for five years, what will be the value of the investment after five…
A: The below formula can be used to calculate future value:
Q: If you place $50 in a savings account with an interest rate of 7% compounded weekly, what will the…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: Daysha would like to save $460 at the end of every three months for the next 6 years in a savings…
A: As per the given information: Interest rate - 1.92% compounded annually Amount deposited at the end…
Q: How much should an investor pay to receive $12,000 three years (36 months) from now, assuming that…
A: RETURN 9%/12 0.75% NPER (n) 36 PMT 0 FUTURE VALUE 12000 Return= Rate
Q: You are scheduled to receive Rs. 13,000 in two years. When you receive it, you will invest it for…
A: In the given question we need to compute the future value after 8 years but we will invest after 2…
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: What would the value of your investment be after five years if you invest P5,000 in a financial…
A: The value of the investment can be calculated with the help of future value formula. Since the…
Q: Suppose you have the opportunity to make an investment in a real estate venture that expects to pay…
A: Present value of annuity = P * {1-[1/(1+r)^n]/r} Where, P =Periodic Payment i.e. 750 r =rate of…
Q: You begin saving for your retirement by investing $640 per month in an annuity with a guaranteed…
A: The question is based on the concept of future value of growing annuity with annual growth rate, the…
Q: You would like to provide your investors with a stable income in perpetuity. How much would you need…
A: Given, Annual interest rate is 8.1%. Number of years 20
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: An investor deposits a sum of Rs 100,000 in an investment company with a promise of a rate of return…
A: Investment = 100,000 Return = 18% Time Period = 5 years
Q: %.
A: Present Value = First cashflow + Cash flow * PVAF(r, n) = First cashflow +…
Q: A person wants to make two individual investments, one today and one in six months at a rate of 18%…
A: monthly rate = 18%/12 = 1.5% X * 1.01512 + 5,000,000*1.0156 = 10,000,000 X = 3,791,163.26
Q: You deposit $14,000 at a 8% interest rate for 9 years compounded quarterly. What is the future…
A: Since the interest is compounded quarterly, we have to calculate effective annual interest rate…
Q: Suppose you have the opportunity to make an investment in a real estate venture that expects to pay…
A: The concept that helps to evaluate the future or present value of the cash flow is term as the time…
Q: What is the maximum amount you should pay today for an investment that pays a single future cash…
A: Future cash flow (FV) = $25000 Interest rate = 2% Semi annual interest rate (r) = 2%/2 = 1% Period =…
Q: An investment promises to pay 3500 per year for the next 3 years and then 4000 per year for the…
A: Year Income 1 3500 2 3500 3 3500 4 4000 5 4000 Discount rate = 15%
Q: If you invest a lump-sum amount of P25,000 at an interest rate of 12%, compounded annually, how much…
A: Future value can be referred to as the value of an underlying asset or security at a future date.…
Q: What is the future value of an annuity with annual cashflows of $4,000 for 38 years? The interest…
A: Future value of an annuity is the future value of stream of same annual cash flows which takes place…
Q: If you put up $73,000 today in exchange for an annual 6.75 percent, 18-year annuity, what will the…
A: The annual cash flow can be computed with the help of present value of annuity.
Q: You expect to receive $50,000 from your superannuation in 3 years from today. If the interest rate…
A: Please refer to the image below
Q: Calculate the future value of an investment of $3,500, after one year, if it is deposited in a…
A: Where, A=future valueP=present valuer=rate of interestn=time period.
Q: You are looking at an investment that will make annual payments of $28,000, $32,000, $66,000, and…
A: Cahs flow 1 28000 Cash flow 2 32000 Cash flow 3 66000 Cash flow 4 99000 Discount rate…
Q: If you want to earn 7% annual simple interest on an investment, how much should you pay for a note…
A: We need to calculate the principle value here
Q: An investment offers to pay you $300 per quarter for 10 years. If the annual rate is 11% with…
A: Calculate the present value as follows:
Q: How much is the present value of your investment if you invest P2,000 semi-annually at the start of…
A: The present value is the value of the sum received at time 0 or the current period. Given…
Q: If you place $50 in a savings account with an interest rate of 7% compounded weekly, what will the…
A: Option (d). $71 is the correct answer.
Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…
A: Time value tells that the money received today has more value than that of receiving the same amount…
Q: You want to invest 8000$ at an annual interest rate of 8% that compounds annually for 12 years.…
A: The future value of money concept is a fundamental concept of financial management. The future value…
Q: You wish to make an investment of $10,000 at 5% interest. How much will your Investment be worth in…
A: Present Value= $10,000 Interest rate= 5% Time period= 20 years
Q: You have just received a windfall from an investment you made in a friend's business. He will be…
A:
Q: How much will I have 8 years from now, if I will invest P10,765 at the end of each three months for…
A: Future value is the worth of any asset or any sum of money at a future date when such asset or money…
Q: An investor deposits a sum of Rs 100,000 in an investment company with a promise of a rate of return…
A: The effective annual rate is the rate of interest an investment generates after taking all the…
Q: How much is the present value of your investment if you invest P2,000 semi-annually at start of…
A: The present value of annuity due is the present value of a series of cash payments that are expected…
Q: If you put $6,000 in a savings account that yields an 1% rate of interest compounded daily, what…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
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- Suppose that you expect to receive an inheritance of £10,000 in one year. You will want to put this money then on a one-year deposit. Suppose further that, as of today, you are entering into a forward rate agreement to receive 4% on £10,000 for a one-year starting in one year. What is your gain/loss when the realised one-year forward rate in one year is higher than 4%? Provide a relevant example and explain your reasoning.What would the value of your investment be after five years if you invest P5,000 in a financial security with an annual return of 8% and reinvest the proceeds each year?Your friend offers to pay you an annuity of $2,800 at the end of each year for 3 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
- You plan to invest $2,000 per year into a retirement account. If you earn a compound annual rate of return of 5%, how many years will it take you to reach a balance of $500,000?To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42 years. You plan to make equal annual end of year deposits into an account paying 8% annual interest. a. How large must the annual deposit be to create the R 220,000 fund in 42 years? b. If you can afford to deposit only R600 per year into the account, how much will you have accumulated by the end of the forty-second year?Suppose your client wishes to purchase an annuity that pays $80,000 each year for 6 years, with the first payment 4 years from now. At an interest rate of 8%, how much would the client need to invest now? Please round your answer to the nearest hundredth.
- Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years. Assume that market interest rate you can earn on similar risky investments is 8%. What should be the present value of this annuity? If you are given the first payment immediately starting today, what should be the worth of this annuity? Which payment mode will you accept? What will be basis of your decision under time value of money concept?You are planning to deposit $4,200 into a financial investment that will pay annual interest rate of 5.5%. How many years will it take to double your investment? Show your workWhat is your annual rate of return if you deposit $2,700 today and withdraw $3,500 in a lump sum in 8 years?
- You begin saving for your retirement by investing $640 per month in an annuity with a guaranteed interest rate of 6% per year. You increase the amount you invest at the rate of 3% per year. With continuous investment and compounding, how much will you have accumulated in the annuity by the time you retire in 40 years? (Round your answer to the nearest cent.)After retirement, you expect to live for 25 years. You would like to have a $95,000 income each year. The annual interest rate is 9 percent per year. Required: Calculate the amount of savings you have in your retirement account to receive this income. A) Assume that the payments start on the day of your retirement. B) Assume that the payments start one year after the retirement.Your friend offers to pay you an annuity of $2,500 at the end of each year for 10 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? Please show your work in excel