J_Fitzgerald_FIN 534_A2

RISK & RETURN AND PAYOFF TABLES TUTORIAL QUESTION 1 Mr. Nel, an entrepreneur who is currently 55 years old, took early retirement from his business which he had started 30 years ago. He still wants to be involved in investments to keep his mind occupied while on “permanent” holiday. While thinking about investment opportunities, he realised that one of his most consistent expenses is his cell phone bill. He has a MTN and a separate VODACOM contract which he pays monthly. He thought to himself, “Why not invest in the company that I am contributing to on a monthly basis.” He decided to conduct research on the two entities in order to assist him with his investment decision. The following information was gathered regarding the two companies: VODACOM Vodacom is a leading African communications group providing mobile communications and related services to 40.4 million customers. Its mobile network covers calls to a total population of approximately 182 million people across five…

Knowledge Check Davis plans to save money to take a two-week cruise on December 31, 2028. On January 1, 2025, Davis plans to invest money in an investment fund paying 8% interest to accumulate $12,000. How much should Davis deposit today to achieve the desired $12,000? (For calculation purposes, use five decimal places as displayed in the factor table provided. Round your answer to two decimal places (e.g.; 52.75).) Table 3: Present Value of 1 (n) Periods 6% 7% 8%A 9% 10% 11% 1 .94340 .93458 .92593 .91743 .90909 .90090 2 .89000 .87344 .85734 .84168 .82645 .81162 3 .83962 .81630 .79383 .77218 .75132 .73119 4 .79209 .76290 .73503 .70843 .68301 .65873 5 .74726 .71299 .68058 .64993 .62092 .59345 Amount to deposit $ 9525.96

Question 4 of 5 Using Technological Tools: Future Value of a Single Sum - Knowledge Check Knowledge Check 0.34/1 You deposit $600 today into a fund that you intend to leave invested for 6 years. The fund earns 4% interest compounded annually. Indicate the inputs to be entered into the financial calculator keys. What is the value of the fund to be accumulated at the end of year 6? (Round future value answer to two decimal places (e.g., 52.75) and interest rate to one decimal place (e.g., 527.5).) Inputs Calculator Keys N Future value $ Save for Later N/A ? PV PMT FV Attempts: 0 of 3 used Submit Answer SUPPORT

Financial Planning Exercise 10 Funding a retirement goal Grayson Harris wishes to have $1.6 million in a retirement fund 30 years from now. He can create the retirement fund by making a single lump-sum deposit today. Use next table to solve the following problems. a. If he can earn 10 percent on his investments, how much would Grayson have to deposit today to create the retirement fund? Round PV-factor to three decimal places. Round your answer to the nearest cent. Calculate your answer based on the PV-factor. $ Calculate your answer based on the financial calculator. $ If he can earn only 8 percent on his investments? Round PV-factor to three decimal places. Round your answer to the nearest cent. Calculate your answer based on the PV-factor. $ Calculate your answer based on the financial calculator. $ b. If, upon retirement in 30 years, Grayson plans to invest the $1.6 million in a fund that earns 8 percent, what is the maximum annual withdrawal he can make over the following 15…

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New Exercise Bank Content Qu. 06-19 Al Ferris has $60,000 that he wishes to invest now in order to use the accumulation for purchasing a retirement annuity in five years. After consulting with his financial advisor, he has been offered four types of fixed-income investments, which we will label as investments A, B, C, and D. Investments A and B are available at the beginning of each of the next five years (call thêm years 1 to 5). Each dollar invested in A at the beginning of a year returns $1.40 (a profit of $0.40) two years later (in time for immediate reinvestment). Each dollar invested in B at the beginning of a year returns $1.70 three years later. Investments C and D will each be available at one time in the future. Each dollar invested in C at the beginning of year 2 returns $1.90 at the end of year 5. Each dollar invested in D at the beginning of year 5 returns $1.30 at the end of year 5. Click here for the Excel Data File Formulate and solve a linear programming model for this…

question 15

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6. Find the policy value today

Present Value of $1 n/i 3.0% 1 0.97087 2 0.94260 3 0.91514 4 0.88849 5 0.86261 6 0.83748 7 0.81309 8 0.78941 0.76642 0.74409 0.55368 0.41199 10 20 30 Present Value of An Ordinary Annuity n/i 5.0% 6.0% 8.0% 3.0% 0.97087 4.0% 0.96154 1 0.95238 0.94340 0.92593 2 1.91347 1.88609 1.85941 1.83339 1.78326 3 2.77509 2.72325 2.67301 2.57710 2.48685 4 3.62990 3.54595 3.46511 3.31213 3.16987 5 4.57971 4.45182 4.32948 3.79079 4.21236 3.99271 5.07569 4.91732 4.62288 6 5.41719 5.24214 4.35526 7 6.23028 6.00205 5.78637 5.58238 5.20637 4.86842 8 7.01969 6.73274 6.46321 6.20979 5.74664 5.33493 9 7.78611 7.43533 7,10782 6.80169 6.24689 5.75902 10 8.53020 8.11090 7.72173 7.36009 6.71008 6.14457 11.46992 9.81815 8.51356 20 14.87747 3.59033 12.46221 30 19.60044 17.29203 15.37245 13.76483 11.25778 9.42691 2.82861 3.71710 4.0% 5.0% 6.0% 8.0% 10.0% 12.0% 0.94340 0.90909 0.89286 0.96154 0.95238 0.92593 0.92456 0.90703 0.89000 0.85734 0.82645 0.79719 0.88900 0.83962 0.79383 0.75131 0.71178 0.86384 0.82270…

O Exponential and Logarithmic Functions Finding the present value of an investment earning compound interest www-awu.aleks.com $ C To help with her retirement savings, Latoya has decided to invest. Assuming an interest rate of 3.55% compounded daily, how much would she have to invest to have $132,700 after 17 years? X Harley V Do not round any intermediate computations, and round your final answer to the nearest dollar. If necessary, refer to the list of financial formulas. Assume there are 365 days in each year. Español ? ^ 圖 □ 。 □ As

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View Policies Current Attempt in Progress Write a formula for the quantity described. The balance in an interest-bearing bank account, if the balance triples in 20 years. Let Bo be the initial balance and t be the number of years. NOTE: Round your answer to three decimal places. B = IT || eTextbook and Media 2 Q Search fg PRE hp fg 10 S >11 H mehp

Question content area top Part 1 ​(Present value of a growing​ perpetuity)  As a result of winning the Gates Energy Innovation​ Award, you are awarded a growing perpetuity. The first payment will occur in a year and will be for ​$20,000. You will continue receiving monetary awards annually with each award increasing by 5 percent over the previous​ award, and these monetary awards will continue forever. If the appropriate interest rate is 12 ​percent, what is the present value of this​ award?       Question content area bottom Part 1 The present value of the award is ​$enter your response here. ​ (Round to the nearest​ cent.)

QUESTION 16 Your financial advisor tells you that if you earn the historical rate of retum on a certain mutual fund, then in three years your $20,000 will grow to $23,152.50. What rate of interest does your financial advisor expect you to earn? a. 6 percent O b.5 percent OC. 8 percent O d. 7 percent

Business 123 Introduction to Investments May I please have the solution for the following exercise? Thank you,

Question 22 Congratulations, you've just won the $3,800,000 state lottery! The lottery commission offers you the choice of $173,000 per year for 25 years or a one-time, lump-sum payment of $1,862,000 if your intensi of annual cash flow or lump-sum) for retirement in an account that earns 15.00% annually, which payment option should you choose? O Take the lump-sum payment now because the present value of the annuity is less than the lump-sum payment. O Take the lump-sum payment now because the present value of the annuity is greater than the lump-sum payment. O You are indifferent between the lump-sum or annuity payment because the present value of the annuity is less than the lump-sum payment. O Choose the annual payment because the present value of the annuity is less than the lump-sum payment. O Choose the annual payment because the present value of the annuity is greater than the lump-sum payment.

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Time Value of Money Calculations  q12 Today Dante and Sharon had their first child.  All of the grandparents gave them money to help out, which added up to $23,000, and they are going to put this money into an education fund for their child’s future. They are nervous about the stock market so they’ve decided to put their money in a GIC which earns an interest rate of 2.6%, compounded monthly. How much money will they have in the account by their child’s 18th birthday?  How much interest will be earned?

Table 3.5 presents a computer spreadsheet for estimating R&E Supplies’ external financing required for 2018. The text mentions that with modifications to the equations for equity and net sales, the forecast can easily be extended through 2019. Write the modified equations for equity and net sales.

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Appendix F - HW Question 5 of 5 - View Policies Show Attempt History Current Attempt in Progress Your answer is incorrect. Patricia Quick made an investment of $7,909.96. From this investment, she will receive $1, 100 annually for the next 15 years starting one year from now. Click here to view the factor table What rate of interest will Patricia's investment be earning for her? (Hint: Use Table 4.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, e.g. 25 %.) Qate of interest %