PV of $1 @ 14% 0.3506 0.3075 10 0.2697

Q: According to the Rule of 72, what must the return on an investment be to double an initial…

A: Investors have different options to make investments, and the motive behind investments is to…

Q: What monthly compounded nominal rate of return would one need to achieve in order to have…

A: Compound = Monthly = 12Monthly Payment = $100Number of Payment = 35 * 12 = 420Future Value of…

Q: You have the opportunity to purchase a security that will pay you $100,000 when it matures in three…

A: Solution:Rate of return refers to the return earned by the investor on per annum basis.So, rate of…

Q: Find the FV of $1,000 invested to earn 12% after 6 years. Round your answer to the nearest cent.…

A: Present Value = $1,000 Interest Rate = 12% Time Period = 6 Years

Q: What ls the present value (PV) of an Investment that will pay $2,500 In five years if the…

A: The present value (PV) is the current worth of a future sum of money or stream of cash flows given a…

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: Q.15 An investment offers $6000 per year for 10 years, with the first payment occurring one year…

A: Value of investment is the present value of cash flow from the investment based on interest rate and…

Q: What amount today

A: Step 1: Given Value for Calculation Future Value = fv = $100Time = t = 1 YearsOpportunity Cost = r =…

Q: Investment A will make N annual payments of $300.00 with the first of the N payments Investment A…

A: In ordinary annuity there are payments at the end of period and in annuity due payments are…

Q: A potential investment has a cost of $440,000 and a useful life of 6 years. Annual cash sales from…

A: Future value refers to the compounded value of the future cash flow. Compounding is done with the…

Q: Rate of return-Annuity What is the rate of return on an investment of $11,733 if the investor will…

A: The rate of return on an investment is the discount rate at which the present value of the future…

Q: I am willing to pay $5,000 today for a promise of $12,000 to be received 8 years from now. What does…

A: The concept of time value of money will be used and applied here. As per the concept of time value…

Q: Problem 1: How long does it take to double an investment of $10,000 having the rate of 10% per…

A: Investment (P) = $10000 r = 10% Final value of the investment (F) = $20000 n = Duration to double…

Q: An investment promises two payments of 650 on dates two and four months from today if the required…

A: The present value is the current value of future cash flows. Investors and money lenders use this…

Q: If you require a 12% annual return on your investments, would you prefer S20, 000 six years from…

A: To calculate the present value of $20,000 received six years from today, we use the formula for…

Q: Question 1 An initial amount of RM 2,000,000 is expected to generate RM 500,000 per year for 6…

A: Discounted Payback Period refers to the period or duration within which the company is able to…

Q: Assume you are offered a $20,000 annual payment, made quarterly (m =4). Payments begin in 10 years…

A: Annual payment=$20000Quarterly payment=20000/4=$5000Discount rate=12%Growth rate=g=4%Deferred…

Q: What is the simple annual rate of return on a $10,000, 3-year investment with cash inflows of $2,000…

A: The simple annual rate of return is calculated by dividing the annual cash flow by the initial…

Q: Calculate the annualised rate of return of an investment that, for an nitial investment of £ 3050,…

A: Rate of return is the amount of profit earned on the initial investment as percentage of initial…

Q: What is the present value of receiving $1,950 a year for 30 years if you expect a rate of return of…

A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…

Q: An investment pays $1,950 per year for the first 3 years, $3,900 per year for the next 8 years, and…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: What is the present value of an investment that pays you $21.96 per month for 11 months if the first…

A: To calculate the present value of an investment with monthly payments, you can use the formula for…

Q: Compute the PV of a perpetuity with monthly payments of $1,000, given an annual discount rate of 4%…

A: Present value refers to the current worth of a future sum of money or cash flow. It accounts for the…

Q: What is the internal rate of return (IRR) of an investment that requires an initial investment of…

A: Initial investment (PV) = $14,000Future value (FV) = $19,320Number of years = 1 years

Q: b first payment is paid today. Your opportunity cost is 8% compounded semi-annually. An investment…

A: The present value of a cash stream: The present value of a cash stream is the value of the series of…

Q: If you require a 12% annual return on your investments, would you prefer S20, 000 six years from…

A: For a lump sum in the future:PV = FV / (1 + r)nFor an annuity:PV = PMT × (1+r) ×[1 - (1+r)-n] / r…

Q: Find the present value of an investment if it is expected to provide annual earnings of $20,000 for…

A: Present value can be defined as how much is the worth of the future sum of money at present provided…

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.