2. A businessman invest P 100000 right now. He then received two payments P109460.00 one at the endof 3 years and one at the end of the 6th year. Calculate the rate of return of the investment.

Rate of return is the internal rate of return earned. Rate of return = 20.00%

Answered: ear. Calculate the rate of return of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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(1) A man wants to invest a sum of P50,000 in two investments. The first investment earns a rate of interest 4 times that of the second investment. In 3 years the first investment grows to P37, 200. For 10 years, the second investment grows to P24,000. Note: Both investment is on simple interest. Find the sum invested in each rate of interest.
Assume that you deposit RM700 in a savings account that pays 5% per year over 6 years. Your savings benefits from _____ as you leave the interest earnings in your account, and your interest earnings increases every year. Select one: a. compounding b. accumulating c. discounting d. aggregating
Calculate manually
If Alvin invest 5500 to day in a saving account. The money will grow to 8500 at the end of the year 4. Assuming that the interest is paid once per year, the effective annual rate of the invent is a. 12.2 b. 12.9 c. 11.5 d. 13.6 E. 10.8
Your brother has asked you to help him with choosing an investment. He has OMR 5000 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 4.25 percent with the interest being paid quarterly. What will be the value of the investment in two years? Select one: O a. 5107 OMR O b. None of these O c. 5441 OMR O d. 5341 OMR
Your brother has asked you to help him with choosing an investment. He has OMR 5000 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 4.25 percent with the interest being paid quarterly. What will be the value of the investment in two years? Select one: O a. 5107 OMR O b. None of these Oc. 5441 OMR O d. 5341 OMR
An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of year 6. If the rate of interest earned on the investment is 8%, what is the present value of this investment? What is its future value? How do you solve this with excel?
It is known that the accumulation function a(t) = At² +B. If RM100 is invested at time 0, the amount accumulates to RM172 at time 3. If RM100 is invested at time 5, find the accumulated value at time 10. (a) In return for payments of RM2000 at the end of 4th year and RM5000 at the end of 10th year, an investor agrees to pay RM3000 immediately and to make an additional payment at the end of 3rd year. Find the amount of the additional payment if the nominal rate of interest is 6% convertible quarterly. (b)
Direction. Solve the following problem involving functions. Problem 1. How much should you invest at 6% annual interest rate to obtain a simple interest of P72,000.00 in 3 years? Problem 2. Jun invested an amount of P100,000.00 where he obtained an interest of P16,000.00 at the end of 21/2 years. At what nominal rate compounded semi-annually was it invested?
3. If you invest $2000 now, and receive 3 yearly payments of $100 each year plus $2500 in the 3rd year, a. what is the Internal Rate of Return (IRR) b. Interpret your results
an investor paid$58000 for an investment. he will get$5780,for every 2 years(forever). what is his effective annual rate of return?
If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%

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