6. Some years pass and the value of your home has risen to $900,000. Your home equity is more than what amount? Ar home equity will be more than S
Q: You want to retire in 25 years. You currently have $200,000 saved and you believe you need…
A: The concept of time value of money will have to be used here. As per the concept of time value of…
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A: Mortgage refers to the loan taken by individual for purchasing tangible fixed asset that is…
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A: Time = t = 20Present value = pv = $1,000,000Future Value = fv = $5,000,000
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A: Time = t = 65 - 45 = 20Payment = p = $6000Interest rate = r = 11%
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A: Data given:: PMT(Annuity) = $16800 i= 5% n= 20 years nper= 20 Required:: Amount you should pay…
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A: The concept of time value of money will be used here. As per the concept of time value of money the…
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A: The rate required to earn the future value using the present value is the compounding rate.
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A: Present value (PV) could be a budgetary concept utilized to decide the current worth of future cash…
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A: Hi studentSince there are multiple questions, we will answer only first question.Time value of money…
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A: A perpetuity is a cash flow stream that goes on forever. The present value of the perpetuity is…
Q: 11. Future Value of an Amount Saved. You estimate that you can save $3,800 by selling your home…
A: Future Value refers to the value of an asset that depends on the assumed growth rate at some point…
Q: You estimate that you can save $8,800 by selling your home yourself rather than using a real estate…
A: The question gives the following information:
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A: The concept of time value of money will be used here. When cash is received at different points in…
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A: Interest on investment refers to the return or profit earned from investing a certain amount of…
Q: Assume you can earn 9.5% per year on your investments. a. If you invest $200,000 for retirement at…
A: Annual interest rate = 9.5%
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A: The maximum amount to be paid for annuity can be calculated by discounting future cash inflows at…
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A: An annuity is a financial product that provides a series of regular payments to an individual over a…
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A: ANNUAL RATE OF RETURN Annual rate of return is computed by deducting the cost of maintenance and…
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A: Compound = Monthly = 12 Future value = fv = $42,000 Time = nper = 5 * 12 = 60 Interest rate = rate =…
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A: Present value refers to the technique of time, value and money used for calculating the value of an…
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A: Interest per year can be calculated as: = Principal * Rate * Time
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A:
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A: Future Value is that amount which is received by the investor in future. it includes the interest…
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A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
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A: It can be calculated using PMT(rate, nper, pv, [fv], [type]) Rate The interest rate for the loan.…
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Q: hat rate of return did you earn on this investment?
A: Return can be calculated as: Return = Selling Value - Buying ValueBuying Value
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A: Solution:- Present value means the value of cash flows from the project in today’s terms i.e.…
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A: To given solution-Explanation:Complete solution.
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A: Time value of money is a financial concept which is used to calculate the value of money in present…
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A: Given, The amount required is $130,000 Rate is 7.5%
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A: Solution We know Present value = future value * discounting factor 5% is the discounting rate in…
Q: How much money do you need to invest at( 23)/(4)% in order to have $12,000 after 7 years?
A: The present value of the amount that is required by an individual to invest for a fixed number of…
Q: 11. Suppose an investor wants to have $10 million to retire 30 years from now. How much would she…
A: Future Value = fv = $10 millionTime = t = 30 YearsRate of Return = r = 15%
Q: You are interested in buying a piece of real estate property that could be worth $450,000 in five…
A: The worth of property in five years represents the future value of the property. The present value…
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A: Solution:Rate of return means the return represented on per annum basis.So, rate of return = [(Cash…
Q: 30 You hope to buy your dream house six years from now. Today your dream house costs $189,900. You…
A: Future value of dream house = PV * (1+r)^nWhere PV = Present Valuer = Average rise in pricesn =…
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- Assume that you own an annuity that will pay you $14,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $125,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment? a. 11.20% b. 4.46% c. 4.87% d. 20.01% e. 5.90%You estimate that you can save $3,900 by selling your home yourself rather than using a real estate agent. What would be the future value of that amount if invested for seven years at 5 percent? Use Exhibit 1-A. (Round FV factor to 3 decimal places to 2 decimal places.). Better if you use your calculator. and final answer Future valueWhat is the value of your money at year 3 if you have 1,200$ today and 1,500$ at year 5? (r= 7.12%)
- You would like to give your son $70,000 towards his college education 12 years from now. How much money must you set aside today for this purpose if you can earn 8% on your investments? B. $176.271.91 C. $27.797.96 A. $12.250.00 interest rate, you will triple your money in ately D. $3,688.65 E. $14.211.11You have just retired with savings of $4 million. If you expect to live for 34 years and to earn 13% a year on your savings, how much can you afford to spend each year (in $ dollars)? $ (Assume that you spend the money at the start of each year.) A Moving to another question will save this response. Question 2 of 25 F3 F4 F6 F5 2" F7 F8 F9 F10 F11 F12 Home End Insert 5 6 10 E D G J K N M4. You are thinking of buying house for $70,000. The house will be worth $100,000 in five years. A. Should you buy the lot if r = 0.05? (r= interest rate a bank would pay you) B. Should you buy it if r = 0.10? (r= interest rate a bank would pay you)
- You purchased a house for 850,000 cash 4 years ago. You can sell it today for 980,000. What rate of return did you earn on this investement? Round your answer to the nearest tenth of a percent.Assume Sheryl Jenkins wants to accumulate $12,241.30 in two years. She currently has $10,919.00 to invest. What interest rate must she earn on her investment (that is if she deposits $10,919.00 today) to have $12,241.30 exactly two years from today?Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $160,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment? O 2.28% O 2.20% O 2.22% 2.33% 2.59%
- 22. If you bought a house 10 years ago and financed $300,000 for 20 years with a 4% interest, what is your current balance on your mortgage loan?a. 159,558.34b. 169,558.34c. 179,558.83d. 189,558.34Assume your child will enter college in 10 years. The total cost of a college education is estimated to be $60,000 at that time. You have $10,000 to invest today. What is the rate of interest that you must earn on your investment to cover the cost of your child's education? A. 17.21% B. 13.55% OC. 19.62% D. 25.52%You have a chance to buy an annuity that pays $25,000 at the beginning of each year for 10 years. You could earn 8.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $346,484.41 O $177,976.57 O $164,033.70