5. If a company plans to place money in a new venture capital fund that currently returns "r" = 20 % per year, compounded daily. What effective " i %" rate is this semiannually?

Q: 1. If a company has an opportunity to invest $85000 now for 16 years at 16% per year simple interest…

A: "Hi, Thanks for the Question. Since you asked multiple questions, we will answer the first question…

Q: 19. A business worth $440,000 is expected to grow at 10% per year compounded annually for the next 3…

A: The future value of any value represents its worth in monetary terms after n periods of growth at a…

Q: How much must you invest at 12% interest, compounding quarterly, in order to see your investment…

A: The amount of investment can be calculated by discounting the future value using the appropriate…

Q: How long will it take for $4,000 to grow to $7,000 if the investment earns an interest rate of 16%…

A: Given information: Future value is $7,000 Present value is $4,000 Interest rate is 16% compounded…

Q: What monthly compounded nominal rate of return would one need to achieve in order to have…

A: Compound = Monthly = 12Monthly Payment = $100Number of Payment = 35 * 12 = 420Future Value of…

Q: 7. Suppose you find an investment account that you decide to contribute to every month over the…

A: Future value is calculated to determine the worth of an investment in the future date if a…

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: Suppose a company had an initial investment of $50,000. The cash flow for the next five years are…

A: The discounted payback period is the application of the time value of money. It discounts future…

Q: Assume you made an investment today for $27,000 and sold it 15 years later for $75,000. What is the…

A: In this question we need to calculate CAGR i.e. Compound Annual Growth rate from given details:…

Q: A company plans to place money in a new venture capital fund that currently returns 10.7% per year,…

A: Effective annual interest rate(EAR) refers to the real rate of return that we earn on our savings or…

Q: An investment account offers a 12% annual return. If $50,000 is placed in the account for two years,…

A: Compound Interest is the interest earned on the interests previously earned.It is a method of…

Q: Nominal annual interest rates are 7.3%. If a businessperson has an opportunity to invest $40,000…

A: Option 1: If 40,000 invested at 7.3% for 5 years: Future Value = Present Value * ( 1 + Interest…

Q: 11. Calculate the present value of payments of RM15,000 per year for 4 years if the first payment…

A: The objective of the question is to calculate the present value of a series of future payments and…

Q: 1. An investment will pay $100 at the end of each of the next 3 years, $250 at the end of Year 4,…

A: Question 1PV = $1,293.22FV = $1,636.80Question 22a. r ≈ 0.1487 or 14.87%2b. The correct option is:…

Q: What is the current value of a security that pays $165,500 per year for 10 years if similar…

A: The present value of all cash flows can be used to calculate the current value of an investment.

Q: What is the present value (PV) of an investment that pays $90,000 every year for four years if the…

A: The present value of an annuity is the sum of the discounted value of the periodic cash flows.…

Q: 11. A young person with no initial capital invests k dollars per year at an annual rate of return r.…

A: In this question, we will be calculating the sum of the total investment at the time (t) for…

Q: ABC deposits $30,000 at the end of every quarter to save up $550000 for a capital project in 4…

A: The nominal return refers to the return quoted to the investor and does not consider the effect of…

Q: You wish to have $23,000 in 10 years. Use Table 11-2 to create a new table factor, and then find how…

A: The question gives the following information:

Q: What is the present value of an investment that promises to pay the investor $6,500 at the end of…

A: Per year payment(annuity) = $6500 Time =9 years Rate =14% *end of the year payment

Q: makes deposit to a shor Inve n 1% !), what will the account balance be af

A: Simple Interest = Principal (initial deposit) * Interest Rate * TimeWhere:Principal = initial…

Q: How much would a business have to invest in a high-growth fund to receive $22,000 every month for 5…

A: Solution:- When an equal amount is receivable each period, it is called annuity. So, present value…

Q: 6. a) What capital should be invested now at 12.69% annually, compounded every two months to have…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

Q: What is the present value​ (PV) of an investment that pays $80,000 every year for four years if the…

A: In this problem we have to calculate quarterly interest and periods and calculate future value…

Q: Which of the following investment options will maximize the rate of return in a period of 20 years?…

A: Monthly Compounding Number of compounding periods = 12   Interest Rate = Rate / Number of…

Q: What annual rate of return is earned on a $3,300 investment when it grows to $7,100 in nineteen…

A: 4.11%

Q: A financial investment equal to BRL 100,000.00 allows a withdrawal of BRL 20,000.00 in the first…

A: Investment  BRL  1,00,000.00 Withdrawal  BRL     20,000.00 Annual growth 2% Time Period 10…

Q: Suppose an investment fund has an interest rate of 3.33% compounded quarterly. How much would an…

A: With number of compounding in a year (m) and annual stated rate (i), the annual effective rate is…

Q: How much will $7,500 invested at the end of each year grow to in six years, assuming an interest…

A: The future value of an annuity is the total worth of a series of equal, periodic payments at a…

Q: What is the present value (PV) of an investment that pays $200,000 every year (end - of - every…

A: Here,AnnuityPayment is $200,000Interest Rate is 5%Compounding Period is Quarterly i.eTime Period of…

Q: 16. (a) An investment secures an income of i at the end of each year for n years; plus a capital sum…

A: The present value of an investment is calculated by multiplying the instalment deposits with the…

Q: An investment will pay $100 at the end of each of the next 3 yrs, $200 at the end of yr 4, $300 at…

A: Given information: Cash inflow for next three years is $100 Cash flow for year 4 is $200 Cash flow…

Q: Nhat is the rate of return (the interest rate) on an investment today of $30,626.24 if the company…

A: TIME VALUE OF MONEY    Time value Of Money(TVM) is the idea that cash you have now is worth more…

Q: At what annual interest rate must $232,000 be invested so that it will grow to be $417,000 in 12…

A: Present value = $232000 Future value = $417000 Period = 12 Years

Q: Suppose that an amount in Kina, is invested in a private financial institution, with interest…

A: As we are finding the final amount, that will be in future, thus we will use the future value…

Q: Star. An advertisement of an investment firm states that if you invest P500 in their firm today you…

A: Investment (PV) = P500 Future value (FV) = P2000 Period = 10 Years Quarterly period (n) = 10*4 = 40…

Q: You place $40,000 in an investment account today that earns 5% compounded semiannually. How much…

A: Amount invested today$40,000.00Additional amount invested at the end of each semi-annual…

Q: How much would you be prepared to pay for a share in 2 years’ time that pays a $1.5 dividend each…

A: This is a case of no growth in dividends which means same dividend for 2 years . so we will…

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.