If an Investment of $5000 will grow to $8000 in four years with quarterly compounding the effective annual interest rate will be closest 12.47% O 11.2% 12.99% 13.4%

Q: What is the initial value of an investment that has a value of $6245.30 after 6 years at a 5.5%…

A: The initial value can be calculated using the Present Value formula.

Q: You plan to invest $50,000 today at an annual interest rate of 12% over 5 years. What the future…

A: Following details are given in the question: Present value (Investment today) = $50000 time period =…

Q: Calculate the future value of $5000 if it is invested at an interest rate of 16% compounded…

A: The worth of an investment or asset on a certain date in the future is referred to as its "future…

Q: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…

A: To calculate the present value of payment that will receive after 1 year we will use the below…

Q: What per annum nominal interest rate with interest compounded quarterly would be needed to achieve…

A: Compounding refers to the power of doubling the investment by adding interest .Compounding helps in…

Q: A firm is scheduled to receive payment of $68,000 in 2 years.  What is the present value of this…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: at an interest rate of 8% compunded monthly, how long does it take an investment to double based on…

A: The objective of the question is to find out the time it takes for an investment to double at an…

Q: 11. Calculate the present value of payments of RM15,000 per year for 4 years if the first payment…

A: The objective of the question is to calculate the present value of a series of future payments and…

Q: An investment will pay you $4000 each year for the next 8 years. The investment yields 6% APR,…

A: Step 1 Investors and financial advisers value the future value because it helps them determine how…

Q: Your company will generate $75,000 every 3-months for the next seven years from a new project.…

A: Given a certain rate of return, present value (PV) is the current worth of a future sum of money or…

Q: How much compound interest is earned on a 6.5-year investment that has a rate of return of…

A: Future value (FV) = $ 9600 Period = 6.5 Years Period in quarters (n) = 6.5*4 = 26 Interest rate = 6%…

Q: 1. How much money will you have in an account after 16 years if your initial investment is $8300…

A: Compound interest is the interest calculated on both the principal amount as well as the interest…

Q: ABC deposits $30,000 at the end of every quarter to save up $550000 for a capital project in 4…

A: The nominal return refers to the return quoted to the investor and does not consider the effect of…

Q: What annual interest rate must be obtained to accumulate $10,000 in 8 years on an investment of…

A: The interest rate is compounding quarterly. Hence, it is important to understand that, annual rate…

Q: An investment promises two payments of 650 on dates two and four months from today if the required…

A: The present value is the current value of future cash flows. Investors and money lenders use this…

Q: If the current rate of interest is 8% APR, then the future value of an investment that pays $250 per…

A:

Q: An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next…

A: Internal rate of Return:  IRR is a discounting cash flow technique gives rate of return earned by…

Q: At what annual interest rate must $232,000 be invested so that it will grow to be $452,000 in 14…

A: Present value (PV) = $232000 Future value (FV) = $452000 Period (n) = 14 Years

Q: Approximately what interest rate would be needed in order to grow and investment of $1400 to $2500…

A: The interest rate that will grow a given investment into a target value over the length of…

Q: If R197 is invested at 11% per annum (pa) compounded quarterly and after 3 months the interest rate…

A: Data given: Amount= R197 Rate=11% p.a. (compounded quarterly) After 3 months: Rate=9% p.a.…

Q: Assume a $100,000 3/1 hybrid with a 30-year maturity and an initial rate of 6 percent. 1. Calculate…

A: Mortgage loans are secured loans and paid by the equal monthly payments that carry payment for…

Q: You are told that if you invest $10,900 per year for 12 years (all payments made at the end of each…

A: Annual Payment = pmt = $10.900Time = nper = 12 YearsFuture Value = fv = $670,000Present Value = pv =…

Q: Assume you can obtain an annual interest rate of 12% compounding monthly.  You are going to invest…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: An investment of $2,000 pays interest of 1.5% per month. What will be the value of this investment…

A: Future value is that amount which will be received by the investor at a specified period of time at…