If the interest payments are done semi-annually, what is the initial investment to be so that 6 years later the amount will be TL84.0007 Interest rate is 26% pa. Your answer: O 3,621 19,379 O 22,992 25,347 50,694

Q: am. 125.

A: Step 1: Identify the Components of the Cash FlowsAnnuity Component: The annual cash flows from year…

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A: To find the value of X, we need to calculate the present value of the cash flows using the given…

Q: rate is 0 during the entire time period, how much is the above income stream worth right now? Please…

A: Present Value of Annuity: It represents the present worth of the future annual cash flows and is…

Q: Q7: You have just received OMR200M from a bank by requesting a loan. Without any deduction you have…

A: Using future value formula we can get period from formula.

Q: An investment promises two payments of $610, on dates four and eight months from today. If the…

A: Lets understand the basics.Value of investment is calculated by discounting payments receivable at…

Q: What is the future value annuity due of RM32,000 for the next 10 years with a discount rate of 8%?…

A: Amount of Annuity = RM 32,000 Years(n) = 10 Interest Rate(r) = 8% Future Value of Annuity = RM…

Q: What is the future value annuity due of RM34,560 for the next 10 years with a discount rate of 12%?…

A: Using the FV function in excel

Q: 7. Suppose you find an investment account that you decide to contribute to every month over the…

A: Future value is calculated to determine the worth of an investment in the future date if a…

Q: An investment offers $6,500 per year, with the first payment occurring one year from now. The…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: Given an interest rate of 8.5 percent per year, what is the value at date t= 8 of a perpetual stream…

A: As per the given question:Interest rate = R= 8.5%Payment= P= $1,900Number of years= T= 14The value…

Q: Approximately, what is the value of (P) if F=114120, n=8 years, and i= 7% per year? O a. 79703 b.…

A: Present value is the current value of certain amount of future money at a required rate of return or…

Q: What rate of interest, compounded annually, will result in the receipt of P15 938.48 if P10 000 is…

A: Let the interest rate = r Final amount (F) = P 15938.48 Invested value (P) = P 10000 n = 8 years

Q: what is the amount of these 4 investment payments?

A: The annual payment will be made at the end of year 4 and year 5. The value of these payments at the…

Q: Given an interest rate of 9 percent per year, what is the value at date t-6 of a perpetual stream of…

A: Interest rate (i) = 0.09 Annual payment (C) = $1200 Period from year 6 to 14 (n) = 8 Value at t6 = ?…

Q: Nominal annual interest rates are 7.3%. If a businessperson has an opportunity to invest $40,000…

A: Option 1: If 40,000 invested at 7.3% for 5 years: Future Value = Present Value * ( 1 + Interest…

Q: Imagine that you have $8,000 to invest for 19 years. How much more interest will you earn if you…

A: Interest is the cost of borrowing or lending money.

Q: An investor receives $1,050 in 6 months in return for an investment of $1,000 now. What is the…

A: Future value = Present value * e(r*t)

Q: An investment product promises to pay $500 at the end of the fifth year (year 5), and the payment…

A: Perpetuity:It shows the present value of the cash flows which are payable at equal intervals…

Q: n interest rate is 12% APR when measured using semiannual compounding. What is the equivalent rate…

A: Effective rate is the rate after considering the impact of compounding on the interest rate.

Q: if you invest £721 for 2 years at a rate of 19% compound interest what will be its value at the end?…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: 8. Using an annual interest rate of 9%, how long will it take a deposit of $1,500 to grow to $3,000,…

A: Deposit amount (PV) = $1500 Future value (FV) = $3000 Interest rate (r) = 9%

Q: 2. An investment promises to pay a perpetuity of $100 per year starting from today. If the discount…

A: A perpetual annuity is a never-ending series of equal cash flows where the investment is done today…

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: Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume…

A: given, A= $200 R=2% N = 20

Q: If you invest 5000 dollars today at a compound interest rate of 9 percent, what will be its future…

A: FUTURE VALUE  FORMULA: FV= PV ×CVIFR,N FV = FUTURE VALUE PV = PRESENT VALUE

Q: Imagine that you have $8,000 to invest for 19 years. How much more interest will you earn if you…

A: When we are investing into particular security, the value of it increases over the period of time.…

Q: Assume you make a deposit of $7,500 now into a saving account that pays 12% per year, compounded…

A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

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A: Future value is that amount which will be require to paid at some specified period of time. It…

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A: Simple interest:   It is the return an individual gets on the amount invested by him at the end of…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. HINT [See…

A: Present value is the worth of a future sum of money at the present date. The present value of…

Q: s from today of the investment

A: Investment - A purchase made with the intention of creating income or capital growth is known as an…

Q: You invest $10,000 into a money market account that pays interest on a semi-annual basis (e.g.,…

A: We use NPER function in excel by taking present value as 10000 and future value as 20000 and…

Q: What is the future value of a $12,500 investment, earning eight-percent interest per period, after…

A: Given details are : Present value of investment = $12500 Interest rate = 8% Time period = 3 years…

Q: Which One of the Following is the Most Valuable. Assume a 12.00% Interest Rate with Annual…

A: Time value of money is a concept where interest component for time period is considered. Time value…

Q: Suppose you are planning to save BDT 2,000 at the beginning of each of the next 10 years with 12%…

A: Annuity due is a term which describes a series of payments or savings that are equal at the…

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: Which of the following investment options will maximize the rate of return in a period of 20 years?…

A: Monthly Compounding Number of compounding periods = 12   Interest Rate = Rate / Number of…

Q: 38. Compounding intervals (S2.4) You are quoted an interest rate of 6% on an investment of $10…

A: Future value is computed by following formula-FV = A × (1+r)nwhere,FV = future value A = Amount…

Q: Suppose that you will receive annual payments of $10,000 for a period of 10 years. The first payment…

A: Given: Annual payments = $10,000 Interest rate = 6% Period = 10 years

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.