If you want to save $50,000 in 8 years, you will earn 6.5% on your investment. a. How much will your payments be annually? b. Identify N, PV, FV, PMT, and I/R, and the formula used to calculate the payment.
Q: You invest $10,000 into an account that earns 4.5% simple interest each year. Give an equation…
A: Amount invested in the account is $10,000 Simple interest rate is 4.5% Time period is 30 years To…
Q: A perpetuity pays an annual dividend of $25. If you want to earn a 10% rate of return on this…
A: In this question we require to calculate the amount we should pay for the perpetuity i.e. we need to…
Q: An investment offers to pay you $8,000 a year for five years. If it costs $28,840, what will be your…
A: YEARS 5 PMT (MONTHLY DEPOSIT) 8000 PRESENT VALUE $28,840 FUTURE VALUE $0
Q: Your investment advisor wants you to purchase an annuity that will pay you $81,491 after 10 years.…
A: The present value of an annuity refers to the value of the future payments on the current date…
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: An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you…
A: Here,
Q: You have a chance to buy an annuity that pays $50,000 at the beginning of each year for 15 years.…
A: Present value means today’s value of money you expect to receive or pay in future. PV = PMT…
Q: Suppose an investment will pay $11,000 in 26 years from now. If you can earn 13.30% interest…
A: MONTHLY COMPOUNDING RATE (13.30%/12) 1.108333333% YEARS (26*12) 312 PMT 0 FUTURE VALUE…
Q: An investment offers to pay you $10,000 a year for four years. If it costs $27,980, what will be…
A: given present value = 27980 future value a year…
Q: 3. Need help with finance homework. Assume a discount rate of 6.75%. You are planning to receive…
A: Discount rate (r) = 0.0675 Period (n) = 6 Years First payment (C) = $12,000 Growth rate (g) = 0.022…
Q: The future value of an investment will be $14,500 in 5 years. It is currently worth $11,000. What is…
A: To find the interest rate earned on an investment, we can use the formula for future value: FV = PV…
Q: An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you…
A: Time value of money is a concept that deals with calculating the actual worth of money at present…
Q: ou are trying to value the following investment opportunity: The investment will cost you $5663…
A: NPV of the perpetuity is determined when there is a constant growth in future cash flow for the…
Q: Suppose you find an annuity that pays 8% annual interest, compounded annually. If you invest in this…
A: Annuity refers to the amount of installment that is paid regularly in a specific time gap and for a…
Q: Suppose an annuity will pay $14,000 at the beginning of each year for the next 5 years. How much…
A: Annual payment (P) = $14,000 Interest rate (r) = 6.5% Period (n) = 5 Years
Q: An investment costs $100 and it promises $50 in 3, 4, 5, 6 and 7 years. What is the return of this…
A: The return on investment is a financial metric used to find out whether the investment will give a…
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: If the present value of an annuity is 38888 dollars, r=3.4% and t=19 years. Assuming annual payments…
A: Annual cash flow amount is calculated using following equation Annual cash flow = PV×r(1-1(1+r)n)…
Q: An investment promises to pay $6,000 at the end of each year for the next three years and $4,000 at…
A: Question 1 is the case of ordinary annuity while question 2 is the case of an annuity due as the…
Q: Investment A requires you to pay $30,000 at t = 0 and you will receive $49, 000 after five years.…
A: Rate of return on investment (ROI) is a measure used to evaluate the efficiency of an investment or…
Q: If you pay $500 for an investment that returns $600 in 1 year, whatis your annual rate of return?…
A: Future value = Present Value * (1+r)^n Where, r = rate of interest n = no. of years
Q: You are considering an investment of $ 1500 annually. The first payment is made now and the last…
A: Given: Annual investment = $1,500 Interest rate = 3% Periods = 4
Q: You have $68,513 you want to invest. You are offered an investment plan that will pay you 4.58…
A: Annual rate refers to the interest rate that is earned over the investment amount by the investors…
Q: An investment pays you $1000 at the end of each of the next 3 years. The investment will then pay…
A: Interest rate = 8% Calculation of present value Year Cash inflow PVF(8%,Year) Present value A…
Q: You will receive a cash payment of $6.4 in 4 years. If the relevant interest rate is 16.4%, how much…
A: To calculate the present value of the $6.4 cash payment received in 4 years at a 16.4% interest…
Q: How much would have to be deposited today in an investment found paying j12 = 10.4% %3D to have $200…
A: Amount after 3 years = Deposit * [ 1 + Monthly rate ]Number of months
Q: An investment promises to pay $5,000 at the end of each year for the next four years and $3,000 at…
A: Annuity payment is the series payment of a certain amount for a particular period of time. Under…
Q: What is the present value of a perpetuity that pays $50 annually and has an annual rate of return of…
A:
Q: Suppose an investment will pay $7,000 in 44 years from now. If you can earn 6.15% interest…
A: Formulas: Present value = Future value / (1+rate)^years
Q: You make an investment into a money market account at time T=0. In year T=5, the value of the money…
A: Given: Time period: 5 years Future value: $5000 Rate of interest: 5% compounded quarterly To…
Q: Keith Riggins expects an investment of $125,473.50 to return $15,000 annually for several years. If…
A: The present value( PV) is a fiscal conception that represents the current worth of a unborn sum of…
Q: Consider an investment which pays $3,000 at the end of year 1, year 2, and year 3. In year 4, the…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: An investment promises to pay $7,000 at the end of each year for the next six years and $3,000 at…
A: In the given case, an investment will pay $7,000 at the end of each year for the next six years and…
Q: Suppose that you have the opportunity to receive $24,000 per year for the next 6 years. Over this…
A: Present value amount refers to the values of money in current period for all future expected cash…
Q: What is the present value of an investment that pays $190 at the end of year 1, $107 at the year of…
A: Present Value is calculate by discounting the future cash flows. Present Value = Future Cash Flows *…
Q: You have a chance to buy an annuity that pays $25,000 at the beginning of each year for 10 years.…
A: Here the payments are being made at the beginning of each year. Hence this is the case of an annuity…
![If you want to save $50,000 in 8 years, you will earn 6.5% on your investment.
a. How much will your payments be annually?
b. Identify N, PV, FV, PMT, and I/R, and the formula used to calculate the payment.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8a8491cb-d24b-4a6e-878a-81b56ff465e1%2F0525ec9b-0314-463d-b90a-f88e3e41701a%2Fyx2kqyb_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps with 4 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Investment A requires you to pay $30,000 at t = 0 and you will receive $49,000 after five years. Investment B costs $73,000 and provides a cash flow of $128,000 after seven years. What is the rate of return for each of the two investments?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?What is the present value of an investment that pays $190 at the end of year 1, $107 at the year of year 2, and $235 at the end of year 3 if this investment earns 5% annually? your answer should be to the nearest dollar. For example, if your answer is id=mce_marker50, then input as 150.
- An investment offers to pay you $8,000 a year for five years. If it costs $28,840, what will be your rate of return on the investment? Use Appendix D to answer the question. Round your answer to the nearest whole number. %An investment offers to pay you $10,000 a year for four years. If it costs $27,980, what will be your rate of return on the investment? Use Appendix D to answer the question. Round your answer to the nearest whole number.An investment promises to pay $6,000 at the end of each year for the next three years and $4,000 at the end of each year for years 4 through 7. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest cent. If you require a 11 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?$ Assuming that the payments are received at the beginning of each year, what is the maximum amount you would pay for this investment, given a 11 percent required rate of return?$
- An investment promises to pay $5,000 at the end of each year for the next four years and $3,000 at the end of each year for years 5 through 8. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest cent. If you require a 9 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?$ Assuming that the payments are received at the beginning of each year, what is the maximum amount you would pay for this investment, given a 9 percent required rate of return?$1. If you receive $176 each month for 12 months and the discount rate is 0.04, what is the future value? (show the process and can use financial calculator)You make an investment into a money market account at time T=0. In year T=5, the value of the money market account will be $5,000. The money market account pays an annual interest of R=6%, and interest is compounded on a quarterly basis. What is the present value of this account?
- An investment promises to pay $7,000 at the end of each year for the next six years and $3,000 at the end of each year for years 7 through 10. Use Table II and Table IV or a financial calculator to answer the questions. Round your answers to the nearest cent. If you require a 15 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?$ Assuming that the payments are received at the beginning of each year, what is the maximum amount you would pay for this investment, given a 15 percent required rate of return?$Consider an investment which pays $3,000 at the end of year 1, year 2, and year 3. In year4, the investment will pay $4,000 and this payment will grow by 2% each year forever. If theappropriate interest rate is 9%, what is this investment worth today? (Show Using BA II Plus or By Hand)You are trying to value the following investment opportunity: The investment will cost you $5663 today. In exchange for your investment you will receive cash payments in perpetuity. The first payment will occur after one year and will be $431. Afterwards, cash payments will grow by 1.3% annually. The applicable interest rate for this investment opportunity is 7.6% (effective annual rate. Calculate the NPV of this investment opportunity.
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)