An investment pays $200 at the end of Year I. $250 at the beginning* of Year 2. $387 at the end of Year 4. and $500 at the beginning of Year 6. If other investments of equal Mk earn 7.5% annually. what will be this investments present value and future value?

Q: An individual wants to deposit $112,100 into two investment accounts. One account pays 66% annual…

A: Note: Assuming, the question has repeated rate of return displayed, hence taking 6% and 15%, other…

Q: Future Value Present Value Table Factor Interest Rate 96

A: Present Value (PV) is a financial concept that pertains to the valuation of future cash flows in…

Q: Rank the following from highest present value to lowest present value. Assume they all have the same…

A: Lets assume that the rate of interest is 10% Lump sum - $1000 Time – 10 yrs r- 10% Present Value…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: Jones expects an immediate Investment of $95,824.80 to return $24,000 annually for five years, with…

A: Annuity is a contract under which one party agrees to pay a fixed amount, at each interval of time,…

Q: eam if interest is 10%, com

A: Given information :

Q: petuities 4. What amount is required to fund a perpetuity that begins annual payments of P50,100…

A: Perpetuity is payment forever and there are annual payments forever period depending on time and…

Q: Justin invests $2000 at time 0. He receives $6443 at time 1 and pays $4500 at time 2. Compute the…

A: Period Cash flows 0  $-2,000.00 1  $  6,443.00 2  $-4,500.00 A negative Sign represents a…

Q: 3. If money is worth 8% compounded quarter ly, determine the present value of the following: a. An…

A: Annuity is a series of equal cash flows occurring at regular intervals. A perpetuity is an annuity…

Q: What’s the present value of a perpetuity that pays $1500 per year if the appropriate  interest rate…

A: Cash flow per year is $1500 The interest rate is 15% To Find: the present value of a perpetuity

Q: What is the present value of a perpetuity stream of cash flows that pays P1,000 at the end of year…

A: present value of a perpetuity stream of cash flows = cash flows at end of year 1/(Discount rate -…

Q: Bill Padley expects to Invest $19,000 for 2 years, after which he wants to receive $22,990.00. What…

A: Present Value = pv = $19,000Time = t = 2 yearsFuture Value = fv = $22,990

Q: Assuming annual interest rates on comparable investments are 3,5%. What annual income could be…

A: Interest Rate= 3.5% Time Period of Annuity = 25 years Savings invested in annuity = 140,000

Q: By using a linear interpolation of the compound interest factors, find the present value of the…

A: The time value of money refers to the concept that takes into account the effect of compounding and…

Q: (a) Compute the present value of an annuity immediate that pays £50 per year for 10 years at an…

A: Present value refers to the current worth of the expected sum of the amount. It is computed by…

Q: NPV Simes Innovations, Inc., is negotiating to purchase exclusive rights to manufacture and market a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: lculate the compounding factor that would be used to determine the future value of an annuity for an…

A: In calculation of the future value of annuity we need future value annuity factors and these are…

Q: 6.32 Effective annual interest rate: You are considering three alternative investments: (1) a…

A: EAR is the effective annual rate that is the real rate of return that is earned on a particular…

Q: Todd Spodek will invest $5,000 at the beginning of each year for the next 9 years. The interest rate…

A: A contract between you and another person known as an annuity obligates the other person to pay you…

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: A new investment opportunity for you is an annuity that pays $560 at the beginning of each year for…

A: Annual payment (P) = $560Interest rate (r) = 5.4% or 0.054Payment time = BeginningNumber of years…

Q: Chris offers you an investmet where if ou investment where if you invest $1,000 today, he'll return…

A: The annual rate of return refers to the yield earned on an investment over the course of one year.…

Q: Compute for the Present Value in Perpetuity if the indefinite Cash Flows is Ᵽ 45,600 and the…

A: Please refer to the image below

Q: A new investment opportunity for you is an annuity that pays $1,100 at the beginning of each year…

A: The maximum amount to be paid for annuity can be calculated by discounting future cash inflows at…

Q: If you require a 12% annual return on your investments, would you prefer S20, 000 six years from…

A: To calculate the present value of $20,000 received six years from today, we use the formula for…

Q: If money is invested at an interest rate of 5.7 percent per year, find the annual percent yield…

A: Effective yield or the APY takes into consideration the number of times compounding is done in a…

Q: You have an opportunity to purchase a perpetuity that pays $74 per year. What is the most you should…

A: Perpetuity is a stream of identical cash flows with no end. It is a type of payment that is both…

Q: How is the accumulated value 12,373.78 if yearly payments of 20,000 are made?

A: Solution:- When an equal amount of payment is made each period at the beginning of period, it is…

Q: You own two investments, A and B, that have a combined total value of $34,300.00. Investment A is…

A: The PV of an investment refers to the combined value of the investment's cash flows assuming that…

Q: f you invest $9,000 today, how much will you have: a. In 2 years at 9 percent? b. In 7 years at 12…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: What's the present value of a perpetuity

A: Perpetuity means a series of equal infinite cashflows, that occur at end of each period with…

Q: You are offered an investment that will pay •$200 in year 1, •$400 the next year, •$600 the…

A: Time value tells that value received today is of more value than that of receiving the exact value…

Q: Jones expects an immediate investment of $49,156.80 to return $8,000 annually for ten years, with…

A: Variables in the question:Present value of investment=$49156.80Annuity payment=$8000N=10 years

Q: If the principal is 124,860 and the future value is 182,568 what is the value of the single payment…

A: single payment present worth factor =Present value (Principal) /Future Value

Q: What's the rate of return you would earn if you paid $3,480 for a perpetuity that pays $70 per year?…

A: The objective of this question is to calculate the rate of return on a perpetuity. A perpetuity is…

Q: Keith Riggins expects an Investment of $45,636.60 to return $6,000 annually for several years. If…

A: Present Value is the value of one dollar as of today which will be received in future. For the…

Q: 3. Determine the future values if OMR 5,000 is invested in each of the following situations: a. 5…

A: Future value can be defined as the worth of money at a future date, computed in accordance with the…

Q: A perpetuity pays a constant dividend of $2.4 every year forever. Its current price is $42.98.…

A: The duration of a perpetuity is infinite. This is because a perpetuity pays a constant stream of…

Q: A perpetuity pays $85 per year and costs $950. What is the rate of return? 8.95% 9.39% 9.86%…

A: The objective of the question is to calculate the rate of return on a perpetuity. A perpetuity is a…

Q: (a)Calculate the present value of an annuityof £1000 paid at the endof each year for 15 yearswith an…

A: Calculation of PV of Annuity, PV of Annuity Due and PV of Annuity Compounded Continuously: Excel…

Q: PART C.) In planning for your retirement, you expect to save $5,000 in year 1, $6,000 in year 2, and…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Annuity X pays $1,200 at each year-end for 15 years. Annuity Y pays $1,100 at the beginning of each…

A: Annual Rate = r = 8%Annuity XPayment = px = $1200Time = tx = 15 YearsPayment Type = At the end of…

Q: What should be the interest rate of an investment cost P5,500 that pays P300 in perpetuity

A: Investment cost = P 5,500 Annual payment = P 300

Q: Number of Annual Present Value Annuity Future Value Payments or Interest Rate Years 6. 10% $301.36…

A: Future value is the value of the present cash flows after certain period. Due to interest that can…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.