6. a) What capital should be invested now at 12.69% annually, compounded every two months to have $40,000 in 10 months? b) How much is the interest?
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6. a) What capital should be invested now at 12.69% annually, compounded every two months to have $40,000 in 10 months? b) How much is the interest?
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- If money is invested at 6% per year, after approximately how many years will the interest earned be equal to the original investment?What is the present value of an investment that will pay $1,000 in one year's time, and $1,000 every year after that, when the interest rate is 8%?A. You invested $100 6 months ago. Today the value of your investment is $110. What is the CCR over 6 months? What is the annualized CCR? B. What is its gross rate of return (%) over the 6 months?
- At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years?What is the value of today of an investment that will pay $100 per year for 5 years. Assume first payment is made 1 year from today and the interest rate is 7%?How long will it take for an investment to increase by 139% its amount if money is worth 14% comp. semi-annually?
- What is the capital cost of an investment if I have 75% of the capital needed at a cost of 10.30% p.a. and can I borrow the rest at a rate of 25.50% per year?3. An investment promises two payments of $500, on dates 3 and 6 months from today. If the required return on investment is 9%: a) What is the value of the investment today?What would be the value of P1,000,000 3 years from now if it would be invested at a return of 12% per annum? *
- Suppose an income stream will produce income at a rate of 4000 + 1000t dollars per year for 5 years, and is invested into an account that earns interest at an annual rate of 6% compounded continuously. (a) How much total income does the income stream produce? (b) How much money will be in the account after 5 years? (c) What is the present value of the income stream?At what rate would $1,700 have to be invested to grow to $20,692.71 in 29 years?11) What is the rate of return on an investment of $124,090 if the company expects to receive $10,000 per year for the next 30 years?