layat kli recer increased sales, it built up some extra money to invest. Hayat Kimya will make deposits every year into an investment fund such that each one is 4% larger than the preceding one. Hayat Kimya will make the first deposit one year from now. Which one of the following is closest to the present worth of this investment if the deposits extend through year 9 and the 4" deposit is $52,530? Use an interest rate of 11% per year. Select one: a. $ 50,516 b. $ 320, 119 c. $ 295,933 d. $ 273,081 e. $ 226,712

layat kli recer increased sales, it built up some extra money to invest. Hayat Kimya will make deposits every year into an investment fund such that each one is 4% larger than the preceding one. Hayat Kimya will make the first deposit one year from now. Which one of the following is closest to the present worth of this investment if the deposits extend through year 9 and the 4" deposit is $52,530? Use an interest rate of 11% per year. Select one: a. $ 50,516 b. $ 320, 119 c. $ 295,933 d. $ 273,081 e. $ 226,712

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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can somebody help me？ thanks K means compound k times a year.
You are evaluating a growing perpetuity investment from a large financial services firm. The investment promises an initial payment of $24,900 at the end of this year and subsequent payments that will grow at a rate of 2.9 percent annually. If you use a 9 percent discount rate for investments like this, what is the present value of this growing perpetuity? (Round answer to 2 decimal places, e.g. 15.25.) Present value $ ?
You have HK$10,000,000 for a particular investment fund. Suppose the fund pays you interest monthly at interest rate of 24% p.a. The term of the fund is similar to time deposit compounded monthly. What is the Annual Equivalent Rate? For how long this investment doubles?
Hansaben
You have a chance to buy an annuity that pays $5,700 at the end of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should Dav for the annuity? a $15,378.22 b. $16,454.70 c. $11,687.45 d. $14,763.09 e. $13.532.83
Suppose that you have an opportunity to invest in a fund that pays 12% interest compoundedannually. Today, you invest P10,000 into this fund. Three years later, you borrow P5,000 from alocal bank at 10% effective annual interest and invest it in the fund. Two years later, you withdrawenough money from the fund to repay the bank loan and all interest due on it. Three years laterfrom this withdrawal you start taking P2,000 per year for 5 years out of the fund. After 5 years, youhave withdrawn your original P10,000. The amount remaining in the fund is earned interest. Howmuch remains?
A).$4500 will be paid 6 years and 10 months now. Find present value of payment if interest is at rate j2 = 9%. Use the practical metho. B). An investment fund guarantees to double your money in five years. What rate of j2 is implied ? C). If money doubles at certain rate of interest compound monthly in six years. How long will it take to the same amount of money to triple in valuy ?
You are 19 years old today. You want to have $381,507.06 in an investment account when you are 60 years old. You will start with an initial deposit in one year from now and grow it by 3% per year for a total of 15 investments. How much is the amount of that initial deposit? Assume an interest rate (a.k.a. return on your investment of 6%. Use the $ sign and a comma and round to the nearest thousand...(e.g. $8,000 would be the form of a correct answer). Hint....the correct answer should be very close to a multiple of $1,000.
Step by step please
You are evaluating a growing perpetuity investment from a large financial services firm. The investment promises an initial payment of $15,000 at the end of this year and subsequent payments that will grow at a rate of 2.0 percent annually. If you use a 9 percent discount rate for investments like this, what is the present value of this growing perpetuity? (Round answer to 2 decimal places, e.g. 15.25.) Present value $
I NEED TO SOLVE THİS USIİNG EXCEL Suppose you invest into Fund X for 15 months with a monthly interest rate of 8%. Each month you pay $260 calculate the ending value in the red shaded area. 1 Suppose you found the Ending Value. You would like to observe the Ending Value for various monthly payments which are $100, $200, $300, and $400 Create one-way data table to see the annual payments for the interest rates in green shaded area. 2 4 5 INVESTMENTS Years Left 6 Fund X Monthly Payment ($260) Interest Rate Ending Value 15 8% 7 8 (100.00) (200.00) (300.00) (400.00) 10 $ 11 $ 12 $
In saving for a future major purchace, Oksana has been making uniform deposits of $4,000 per year in an account that has earned variable annual interest rates of i1 = 12 = 13= 8% and i4 = 15 = 10% (see cash flow diagram below). How much does she have in the account immediately after making the last deposit? i₁ 1₂ 12 The account will have $ 13 i4 is *** (Round to the nearest dollar.)

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