An investment product promises to pay you PHP20,000 in dividends every year forever. What is the maximum price you would pay for this product if you required at least a 10% annual return on your investment?

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Save 20% of Yearly Income Income in first year = 1,000,000 Savings in first year = 20% * 1,000,000 =…

Q: Your project will give you a rate of return of 100% over 15 years. Is this a lot or a little? How…

A: Effective Rate is real rate at which investment value will appreciate over a given period. It shows…

Q: You deposit $19,000 today in an investment account and the annual rate of return is 12%, what will…

A: Formulas: Future value = Present value *(1+rate)^years

Q: You have a cash of Rs. 100,000 today. What will be its value after 5 years if you make an investment…

A: Present Value = 100,000 Time Period (N) = 5 Interest Rate = 12%

Q: You are going to invest $6829 in 1 years and $7200 in 4 years.  If you expect to earn a return of…

A: The time value of money is a fundamental concept in finance that recognizes the idea that money…

Q: How much will you have saved after 6 years by contributing $1,200 at the end of each year if you…

A:

Q: u are able to invest $100 at the end of 1 year into an investment earning 6%. At the end of year 2,…

A: Future value of money increases with due to accumulation of interest over the period of time of…

Q: You can invest $ 35,000 today. This investment offers you a fixed annual return, computed monthly…

A: Perpetuity is the series of payments at fixed intervals for an infinite time period.  The amount of…

Q: You have a chance to buy an annuity that pays Php2,500 at the end of each year for 3 years. You…

A: As per the given information: Annual payment = Php2,500Interest rate = 5.5%Period - 3 years To…

Q: You are looking at an investment that promises to pay $2000 per year forever! What is the value of…

A: A cash flow that goes on forever is called a perpetuity.Here the cash flow of $2000 per year forever…

Q: How much money should you invest now to ensure $600 per year for 9 years starting next year. The…

A: Given Information: Rate of interest - 16% Annual amount - $600 per year No. of years = 9 To compute:…

Q: How much should an investor pay to receive $12,000 three years (36 months) from now, assuming that…

A: RETURN 9%/12 0.75% NPER (n)  36 PMT 0 FUTURE VALUE 12000     Return= Rate

Q: years from today, and 2,000 four years from today. What will the value of your account be 4 years…

A: The future value is the estimated value of an investment that accounts for compound interest or…

Q: Assume you have $100,000 now. If you get an average annual return of 4%, how many years will it take…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per period i.e. 4%n = no. of…

Q: A. Assume that you have $7500 to invest. You plan to invest it for 10 years at a rate of 7% per…

A: Future Value = Present Value * (1 + Interest Rate)^Time

Q: You are thinking on purchasing some assets that will give you 5,000€ per year, starting in 5 years,…

A: In order to decide whether to purchase the asset we need to find out the present value of cash…

Q: You wish to have an investment that will bring about $50 000 in ten years, and the rate of return is…

A: Value of investments after 10 years=$50,000Rate of return(r)=8%Time(n)=10 years

Q: ou wish to have an investment that will bring about $50 000 in ten years, and the rate of return is…

A: Future value is defined as the amount that one gets at the end of the maturity period. An investment…

Q: You just paid $551 for a security that claims it will pay you $1910 in 15 years. What is your annual…

A: Annual rate of return means the percentage of gain on something annually. It is a measure of yearly…

Q: You have $10,000 to invest for five years. - How much additional interest will you earn if the…

A: Given Information : Amount invested - $10,000 (Present value) Rate of interest (r) - 5%/4.5% Time…

Q: Suppose Karlem invested P20,000 for five years with simple annual interest of 10%. What is the…

A: Simple interest is a method under which interest is calculated on a principal amount. It calculates…

Q: You plan to save Php7,000 per year, beginning immediately. You will make 3 deposits in an account…

A: Answer= Php23,261

Q: If you invest $600 today at a rate of 14%, how much will you have in the account after 15 years?…

A: Present Value = pv = $600Interest rate = r = 14%Time = t = 15 years

Q: If you invest $3000 today at 7% per year, how much will it be worth in 30 years? PLEASE SHOW WORK IN…

A: The objective of the question is to calculate the future value of an investment of $3000 at an…

Q: In order to receive P12,000 at the end of three years and P10,000 at the end of five years, how much…

A: In the given given case it is assumed that compound interest mathod is used. Under compound interest…

Q: How much will you need to invest today at 10% to have $10,000 six years from today?

A: Using excel PV function Where, PV = present value NPER = no. of years FV = future value

Q: Suppose that you plan to invest $1500 at the end of each of the next 9 years, and you want to have…

A: Rate of return refers to the minimum return to be earned by the investors on the initial investment…

Q: What is the present value of receiving $4,000 per year for 10 years? Your annual required rate of…

A: It can be calculated using PV formula in excel PV (rate, nper, pmt, [Fv], [type]) Rate The interest…

Q: If a financial planner promised to pay you $100000 a year forever, what is the maximum amount of…

A: Given information: Promised to pay $100,000 Interest rate is 5%

Q: You have a chance to buy an annuity that pays Php2,500 at the end of each year for 3 years. You…

A: An annuity is a type of security that pays periodic payments over a specified period of time. In…

Q: how much should you invest now in a single investment if you expect to withdraw $45,000 in 9 years…

A: Step 1: Introduction Present Value: The value of the money identified today for the money/sum of…

Q: Your plan is to have $40,000 in your account, 13 years from today. You can invest in an account that…

A: Future value required (FV) $40,000 Interest rate = 8.05% Monthly interest rate (r) = 8.05%/12 =…

Q: $10,000 as a bonus after 6 years. You have calculated the present value of this bonus and the answer…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: 14,000 as a bonus after 6 years. You have calculated the present value of this bonus and the answer…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: You are going to invest $9237 today and $9695 1 year from today.  If you expect to earn a return of…

A: Step 1 Future value is the amount of money that, with time and an interest rate, is invested now and…

Q: If you invest $2,000 in an account with an annual yield of 12.0% compounded each month. What is the…

A: The question is based on the concept of calculation of future value . Formula as,  FV=PV*(1+rn)t*n

Q: How much time will it take you to accumulate $625,000, assuming you invest $15,000 today and an…

A: The problem is asking us to calculate the time it will take to accumulate a certain amount of money,…

Q: If you want to earn 5% annual simple interest on an investment, how much should you pay for a note…

A: The question is based on the concept of time value.

Q: If a RM10,000 investment will return RM25,000 to you in five years, then to the nearest percent what…

A: Investment = RM10,000 Return = RM25,000 Period = 5 Years

Q: What is the present value of an investment that promises to pay you $ 1, 000 in five years if you…

A: Here, The present value is PV. The future value is FV. The maturity is n. The interest rate is r.