An investment of $40,000 yields a net annual income of $8,000 for 11 years. What is the annual interest rate of this investment?

Q: How much money would have to be deposited today to accumulate:

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: If $600 is invested in an account with an annual interest rate of 14.5%, compounded continuously,…

A: We need to use the formula of continuous compounding belowA=P(e)rn  where   A=future valueP=present…

Q: What is the future value (FV) of $55,000 in twenty-five years, assuming the interest rate is 13% per…

A: Solution:- When some amount of money is invested somewhere, it earns interest on it. The amount…

Q: At what annual interest​ rate, compounded​ annually, would ​$500 have to be invested for it to grow…

A: FV = A * (1+r)nwhereFV = future valueA = amount investedr = interest raten = time period

Q: If the cost of capital is 12%, what is the present value of a perpetuity that pays $11,000 at the…

A: The present value of perpetuity can be calculated as ratio of cash flows and the discount rate

Q: Your company will generate $74,000 in annual revenue each year for the next seven years from a new…

A: Present Value = future value discounted at 7.25%

Q: At what annual interest​ rate, compounded​ annually, would ​$490 have to be invested for it to grow…

A: Principal Amount (P): This is the initial sum of money you begin with or invest. It's the starting…

Q: The sum of $100 is invested at an annual compound interest of 6%. How long will it take for the…

A: Compound interest refers to the method of calculation of interest on investment where the amount…

Q: What is the value today of receiving a single payment of $81,374 in 4 years if your required rate of…

A: Present Value is the current price of future value which will be received in near future at some…

Q: An annual perpetuity of $10,000 has a present value of $250,000.  What is the annual interest rate?

A: Present value of an annual perpetuity = Annual cash flow/Interest rate Interest rate = Annual cash…

Q: What is the future value of $2,500 deposited for one year earning a 14 percent interest rate…

A: In the given question we require to compute the future value of investment from following details:…

Q: At what annual interest rate, compounded annually, would $520 have to be invested for it to grow to…

A: Future Value is that value which includes the interest earned and initial invested amount. It is…

Q: how much would be available at the end of the time period. How much is the interest earned?

A: Time value of money (TVM) means that the money received in the present period will have more value…

Q: What is the IRR of an investment that costs $70,500 and pays $27,500 a year for 4 years?

A:

Q: How long would it take an amount of  $4,000 invested at an interest rate of 21 % per year,…

A: Given information: Present value is $4,000 Future value is $16,000 Interest rate is 21%

Q: Which of the following investments will have the highest future value atthe end of 10 years? Assume…

A: The future value is the value of assets assuming a growth rate. The time value of money states that…

Q: An investment will pay you $83,000 in five years. Assume the appropriate discount rate is 6.75…

A: The concept of time value of money will be used to solve this question.   We need to find the…

Q: Rate of return-Annuity What is the rate of return on an investment of $11,733 if the investor will…

A: The rate of return on an investment is the discount rate at which the present value of the future…

Q: earns an annual interest rate of 12 percent compounded Semi annually. What is the effective annual…

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: What is the final value of $20, 000 if left in an account that pays 10% interest per annum for 30…

A: The final amount after 20 years will be the future value of the initial deposit.

Q: At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years?

A: We use rate function to calculate interest rate

Q: Suppose you invest $100 at an annualized and continuously compounded rate of 3.45%. What is the…

A: Future value of amount in case of continuous compounding is calculated as follows:-FV = A *…

Q: what annual rate of return is needed to receive $930 in one year on an investment of $ 18,600?

A: Simple interest refers to the method of interest calculation where the principal amount remains…

Q: How many years an investment would be four times its initial value at an interest rate of 11…

A: The rule of 144 calculates the number of years in which the money or investment will quadruple. The…

Q: What is the present value of $10,000 to be received two years from today assuming an annual interest…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: An investment will provide after-tax revenue of $22,336 per year for 7 years. What is the present…

A: After tax revenue (P) of $22,336 for a period (n) of 7 years will be received. Present value annuity…

Q: If the initial investment is $200,000, what would be the nominal annual rate of interest compounded…

A: Interest is the cost of borrowing the money.

Q: If TNT Corp.invests $50,835 now and it will receive $100,000 at the end of 10 years, what annual…

A: The time value of money (TVM) is the idea that an amount of money is worth more right now than it…

Q: What is the final value of $20,000 if left in an account that pays 10% interest per annum for 30…

A: Using excel FV function

Q: ay you $99,000 in 15 years. If the appropriate discount rate is 6.7 percent compounded quarterly,…

A: The given problem can be solved using PV and EFFECT function in excel. PV function computes present…

Q: Suppose you invested $1000 every 3 months over a 15 year period. If money earns an annual rate of…

A: Compound = quarterly = 4Payment = p = $1000Time = t = 15 * 4 = 60Interest rate = r = 6.5 / 4 =…

Q: eposit $10,000 into an investment account.  You believe that you can reasonably expect a compounding…

A: The more is compounding of interest rate more is the effective interest rate and more is future…

Q: how much will a single investment of $10,000 be worth in 10 years

A: Time value of money(TVM) means that the amount of money received in the present period will have…

Q: $15,000 is invested for 5 years at an annual simple interest rate of 17%. a) what will you earn in…

A: Interest = Principal * Rate * Time

Q: At what annual interest​ rate, compounded​ annually, would ​$510 have to be invested for it to grow…

A: Investment amount (PV) = $510 Future value (FV) = $1961.97 Period (n) = 15 Years

Q: Find the present value of an investment in plant and equipment if it is expected to provide annual…

A: Formula: Present value of an investment in plant and equipment = [ Annual earnings x Present value…

Q: You deposit $14,000 at a 8% interest rate for 9 years compounded quarterly.  What is the future…

A: Since the interest is compounded quarterly, we have to calculate effective annual interest rate…