Investment A pays 8% interest for 10 years.  Investment B pays 7.75% interest for 10 years.  Both require an initial $10,000 investment.  The future value of A minus the future value of B is equal to _____ (to the nearest penny

Q: Of the following investments, which would have the lowest present value? Assume that the effective…

A: The objective of the question is to determine which of the given investments has the lowest present…

Q: What present value amounts to $15,000 if it is invested for 20 years at 8% compounded annually?…

A: Present Value = Future value / (1+r)^n Where, r = rate of interest i.e. 8% n = no. of years i.e. 20…

Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300…

A: The time value of money refers to the concept in finance that takes into account the effect of…

Q: An investment of R20 000 accumulated to R45 200. If the applicable simple interest rate is 12% per…

A: given, P= R 20,000 A = R45200 r=12%

Q: What is the present value of 10 equal payments of $16,500 to be made at the end of each year for the…

A: Present value of equal payments = equal payments x PVIAF (10%, 10 years)

Q: If $15,000 is invested at 3.5% for 20 years, find the future value if the interest is compounded the…

A: Initial investment (I) = $15,000 Interest rate (r) = 0.035 or 3.5% Period (t) = 20 years Future…

Q: This problem demonstrates the dependence of an annuity's future value on the size of the periodic…

A:

Q: An investment pays $2,100 per year for the first 7 years, $4,200 per year for the next 7 years, and…

A: The discount rate is 8.20% compounding quarterly. The cash flows have a periodicity of 1 year.…

Q: Jones expects an immediate Investment of $95,824.80 to return $24,000 annually for five years, with…

A: Annuity is a contract under which one party agrees to pay a fixed amount, at each interval of time,…

Q: An investment pays an annual cash flow of $1 forever. The appropriate discount rate is 4% per year.…

A: Annual cash flow (C) = $1Discount rate (r) = 0.04Present value = ?Present value will be the…

Q: The sum of $100 is invested at an annual compound interest of 6%. How long will it take for the…

A: Compound interest refers to the method of calculation of interest on investment where the amount…

Q: An investment will pay you $96,000 in six years. Assume the appropriate discount rate is 7.5 percent…

A: Compound = Daily = 365 daysFuture Value = fv = $96,000Time = t = 6 * 365 = 2190 daysDiscount rate =…

Q: An investment pays 10​% interest compounded continuously. If money is invested steadily at the rate…

A: Continuous Compounding: It is the maximum limit of the compound interest if it is calculated and…

Q: If $35,500 is invested at 6.2% for 30 years, find the future value if the interest is compounded the…

A: Honor code: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: n investment will pay $150 at the end of each of the next 3 years, $300 at the end of Year 4, $600…

A: The value of money at present is known as the present worth of the money while the value of money…

Q: what is its present value? Its future value?

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Which of the following investments will have the highest future value atthe end of 10 years? Assume…

A: The future value is the value of assets assuming a growth rate. The time value of money states that…

Q: a) How much will this investment be worth after 10 years? (Round your answer to the nearest cent.) $…

A: Investment Amount = $49,000 Time period = 10 years Rate of interest = 8% compounded continuously.…

Q: If you invest $9,700 per period for the following number of periods, how much would you have…

A: aWe can solve this using Future value of annuity formula Future value is = P*((1+r)^n-1)/r "P" is…

Q: An investment pays $2,100 per year for the first 4 years, $4,200 per year for the next 3 years, and…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: An investment of $7000 at 3% is compounded semiannually for six years. Find the future value and…

A: Interest is an additional amount which is paid on amount borrowed by considering time period. There…

Q: An investment will pay you $40,000 in 11 years. If the appropriate discount rate is 6.7 percent…

A: Present value is calculated by discounting the future cash flow using the appropriate discount rate.…

Q: Tricorp Company is considering an investment that is expected to return $320,000 after four years.…

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

Q: An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $300…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: If the interest rate is 5%, then the capitalized value of an investment that would be $ pays $8 per…

A: The capitalized value of an investment is the present value of the stream of income that the…

Q: An investment will pay you $100,000 in 10 years. If the appropriate discount rate is 6 percent…

A: Future value = fv = $100,000 Time = t = 10 * 365 = 3650 days discount rate = r = (1 + (0.06 / 365))…

Q: #2 - You expect to receive a payment of $1 million in a year. That annual interest rate is 5%. What…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Consider the following future value. (Round your answers to the nearest cent.) $3,739 at 11 7/8%…

A: The question is based on the concept of time value of money, where one dollar is worth more today…

Q: An investment offers $8800 per year for 14 years with the first payment occuring one year from now.…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $400…

A: The Future value refers to the value of the future expected cash flow at future date. It is…

Q: An investment opportunity requires a payment of $620 for 12 years, starting a year from today. If…

A: Present value : The financial concept used to establish the current valuation of future cash flows…

Q: $15,000 is invested for 5 years at an annual simple interest rate of 17%. a) what will you earn in…

A: Interest = Principal * Rate * Time

Q: If 14700 dollars is invested at an interest rate of 9 percent per year, compounded semiannually,…

A: Using excel FV function

Q: If the current rate of interest is 5%, then the future value (FV) of an investment that pays $1,000…

A: The question is based on the concept of future value calculation of annuity payment, by use of…

Q: An investment pays $40 annually, forever, starting 8 years from now (at t=8). The effective annual…

A: The present value is the present worth of the amount that will be paid or received in the future.

Q: An investment opportunity requires a payment of $910 for 12 years, starting a year from today. If…

A: The question gives the following information:

Q: If 14700 dollars is invested at an interest rate of 9 percent per year, compounded semiannually,…

A: The amount at the end of a specific number of years will be the future value of the initial deposit.

Q: An investment offers $9,200 per year for 17 years, with the first payment occurring one year from…

A: STEP 1 Given a specific rate of return or discount rate, an annuity's present value (PV) is the…

Q: What would you pay for an investment that pays you $4300000 after twenty years? Assume that the…

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: A person invests $2000 in an account at 10% interest compounded annually. When will the value of the…

A: The simple interest rate is different than the compounded rate of interest. The compounding interest…

Q: Consider the following investment. (Round your answers to the nearest cent.) $5,600 at  6 3/4%…

A: Time value of money concept says that if we invest a particular sum of money today will not have…

Q: An investment will pay you $43,000 in 10 years. If the appropriate discount rate is percent…

A: The present value is calculated using the following equationPresent value = Where n is the number of…

Q: An investment will pay $600 at the end of each of the next 2 years, $700 at the end of Year 3, and…

A: Net Present Value - It is the difference between the present value of cash outflow and present value…

Q: The interest rate required for a $2,050 investment to double in 5 years can be found from this…

A: We have to solve the given equation to get the value of r.

Q: A four-year investment requires annual deposits of $300 at the beginning of each year. The deposits…

A: Time = t = 4Payment = p = $300Interest Rate = r = 9%Payment Type = at the beginning