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- A geometric gradient that increases at f = 6% per year for 15 years is shown in the following diagram. The annual interest rate is 15%. What is the present equivalent of this gradient?Today (n=0), a company invests $1,000 and expects that investment to grow 10% each period for the next six periods (n=6). What is the investment's expected future value?What is the future value of a constant income stream of $20,000 per year in 6 years from now given a continuous interest rate of 3.5% per annum? Give your answer to the nearest dollar and show working. уears
- Ten annual returns are listed in the following table: | a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100.00 at the beginning, how much would you have at the end? a. What is the arithmetic average return over the 10-year period? The arithmetic average return over the 10-year period is %. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) - 19.2% 16.1% 18.1% -49.5% 43.2% 1.9% -16.8% 45.9% 45.1% -3.5% Print Done ×A new investment is expected to return $15,000 per year, starting from next year (t=1) for ten periods (i.e., from t=1 to t=10). Thus, the sum of the expected returns over those periods is $150,000. How much is the sum of the present value of the expected return over those periods, assuming that the annual interest rate is 5%?You want to be able to consume 12.4% more of goods and services this coming year. You know that inflation is at a 30-year high and is 8%. What should your minimum investment return be so that you can meet your consumption need?
- What is the geometric average return over one year if the yearly returns are -9%, 8%, 5%, and 14%, respectively?If prices increase at a monthly rate of 1.5%, by what percentage do they increase in a year?You are required to find how long it will take a sum of money (or anything else) to grow to some specified amount with a certain compound interest rate. Specifically, if a company’s investment has a real rate of return of 4% per year and the inflation rate is 6% per year, approximately how long will it take for the investment to triple?
- For each growth rate below, (i) use the rule of 70 to calculate how long it will take incomes to double, and (ii) if each country starts with an income of $1,000 per capita, use the exponential growth equation to calculate what the income will be in 30 years. Instructions: Round your answers to one decimal place. Years for incomes to Incomes in double 30 years a. 4 percent b. 7 percent c. 2.5 percent d 10 percent e. 3 percentTen annual returns are listed in the following table: 19.5% 16.5% 17.8% - 49.8% a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning, how much would you have at the end? (Click on the following icon in order to copy its contents into a spreadsheet.) 43.3% 1.7% 44.9% - 16.9% 46.3% -3.7%Ten annual returns are listed below. -19.9%, 16.6%, 18%, -50 %, 43.3%, 1.2%, -16.5 %, 45.6%, 45.2%, a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning of the period, how much would you have at the end?