ou iust invested 549.000 that you received as an insurance settlement. How much more will this account be worth in 40 years if you earn an average return of 7.6 percent rather than 7.1 p annual compounding) O $59,818.92 O $98,509.16 O $140,423.33

Q: What is the present worth of a 3 years annuity paying P300,000.00 at the end of each year, with…

A: Solution: Present value of annuity is the present value of annual amount to be paid/ received…

Q: which one is correct please confirm?  Q1: "I invest GBP500,000 for one year in a deposit which…

A: Future Value(FV) is value of current amount at future point of time. It is computed by compounding…

Q: A perpetuity has a PV of $25,000. If the interest rate is 11%, how much will the perpetuity pay…

A: A perpetuity is a cash flow that goes on forever. In other words the time period for a perpetuity is…

Q: three years from now. What is the present value of the investment if the rate of interest is 12%…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: fane has $1L025 and plan to purchase a 5-year certificate of degosit KD tht y interest, conmpounded…

A:

Q: annual interest rate?

A: The formula to calculate the future value of current investment amount is  C*(1+r)n, where C is the…

Q: The buyer of a lot paid P110,000 down payment and agreed to pay P35 000 at the end of each six…

A: The cash price can be found by adding up the downpayment and present value of the annuity. The…

Q: Today, Thomas deposited $130,000 in a three year, 4% investment account that compounds quarterly…

A: Future value means the future worth of the money received or paid today. The future value is…

Q: If $8,000 is invested in a certain business at the start of the year, the investor will receive…

A: The present value of a business opportunity is the current worth of potential future cash flows or…

Q: 46. If money is worth 10% compounded quarterly, what monthly savings is required monthly in order to…

A: Future value is the value of a current asset at a future date based on an assumed rate of growth…

Q: What is the future value of $250 received today if it is invested at 6.5% compounded annually for…

A: In this question we require to calculate the future value from below details : Present value = $250…

Q: Find the present worth of perpetuity of P 6,000 annually with an interest rate of 10% compounded…

A: A perpetuity is an annuity that gives payments but has no maturity period.

Q: An account earning 3.2% annual interest contains 1 million dollars. If a fixed amount of money is…

A: Time has been precious in all perspectives, however in terms of finance; the time has a monetary…

Q: Assuming annual interest rates on comparable investments are 3,5%. What annual income could be…

A: Interest Rate= 3.5% Time Period of Annuity = 25 years Savings invested in annuity = 140,000

Q: You made an investment of $8,500 into an account that paid you an annual interest rate of 4.2…

A: Given information: Initial value of investment (V0) = $8,500 Annual interest rate for first "eight"…

Q: Thrifty Industries borrowed $150,000 amortized over 10 years at a rate of j12-4.8% with monthly…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Q: ompute the annuity of the money ompounded monthly at the rate o O 665 O 755 O 801

A: Future value of annuity includes the annuity amount deposited and compound interest accumulated over…

Q: What amount of money deposited 70 years ago at 3% interest would provide a perpetual (i.e. infinite…

A: Perpetual Amount Formula = Annual Amount/ Interest rate  Annual Amount = $ 23,000 Interest Rate = 3%…

Q: If you put up $30,000 today in exchange for a 6.50 percent, 15-year annuity, what will the annual…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: if $875 000 is saved for retirement, what rate of interest, compounded semi-annually, will provide…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: 1 You deposit P10 000 into a 9% account today . At the end of two years , you will deposit P30 000 .…

A: Future Value The future value is the amount that will be received at the end of a certain period.…

Q: Answer the following time value of money questions assuming the interest rate is 5 percent. a. What…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of…

A: Annual deposit for 3 years = $ 1000 Annual interest rate = 5% Future value period = 4 Years

Q: Hannah deposits OMR 500 in an account earning 5% compounded half yearly. What will be the interest…

A: The answer is option (b.) [OMR 109.20] Refer step 2 for explanation

Q: Present Value of a Perpetuity What's the present value, when interest rates are 6.70 percent, of a…

A: The quantity of the regular cash flows is simply divided by the discount rate to get the present…

Q: Mr. Chips, Inc. wishes to accumulate $1,200,000 to be used to pay off a balloon note at the end of 5…

A: The present value formula is used to compute the today’s value of $1 being paid or received in the…

Q: You invest $1,900 three years from today and $1,100 four years from today. How much will you have in…

A: Finance is the management of money. The time value of money principle explains that a dollar today…

Q: Give typing answer with explanation and conclusion An insurance company offers a policy by which a…

A: One of the useful concept used in finance is time value of money. As per this concept, a dollar…

Q: A man expects to receive P20,000.00 in 8 years. How much is that money worth now considering…

A: Answer -  Present Value is a formula used to calculate the present-day value of a certain amount…

Q: The monthly premium on a five-year insurance policy is $25 payable in advance What is the economic…

A: Formula: Future value = Present value x ( 1 + r )N Present value gets multiplied with rate of…

Q: QUESTION 10 Suppose you deposit $5,000 a year at the end of each year for 10 years. You earn 4.2%…

A: Future value is the value of asset or investment, made for the number of period at equal interval at…

Q: An insurance policy pays $50,000 immediately or $4,000 every 6 months for 10 years beginning now.…

A: Interest rate refers to the charge at which the loan is to be provided by the lender to the borrower…

Q: How much would $9,00o t8 be received at the end of 50 years be worth today if the rered rate of…

A:

Q: 15. Helen Barns wishes to purchase a new home and borrows $389,000 with a repayment plan of 25…

A: Step 1: The calculation of the annual payment  AB1Borrowings (PV) $3,89,000.00 2Years (N)253Interest…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: PMT = 58 Period = 13 years  Nominal rate of interest = 7.23% Additional amount = 1000

Q: What is the present value (PV) of $40, 000 received ten years from now; assuming the interest rate…

A: The objective of this question is to calculate the present value of a future sum of money. In this…

Q: You purchase a home for $207,000 that you expect to appreciate 8% in value on an annual basis. How…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: How much do you need to invest today if you will also invest $2,700 at the end of every year for 39…

A: Accumulated amount (AV) = $1,000,000 Rate of return (r) = 0.065 Annual deposit (D) = $2,700 Period…

Q: Acme Insurance is offering you a perpetuity that will pay you and your heirs $150,000 per year. If…

A: A perpetuity is a type of financial instrument or investment that provides a fixed stream of cash…

Q: The Maybe Fay Life Insurance Co. 1s tying to sell you an Investment policy tt will pay you and hetrs…

A: Present value = Amount to be paid forever / Required return

Q: Which comes closest to the future value of $875 to be received at the end of 7 years, if the amount…

A: Solution:When some amount is invested somewhere, it earns interest on it.The amount initially…

Q: Ali invested 5000 Rials in a saving account that paid quarterly interest. After 6 years the money…

A: answer : let us first not down the information given in the question initial investment = 5000…

Q: Dhofar Insurance Company has made an investment in another company that will guarantee it a cash…

A: Given information: Cash flows: OMR 37,250 Discount rate : 15% Time period : 5 years

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.