Q1. you put in GH¢ 10,000 today in an investment account that will yield 10% p.a. for 4 years. What is the size of this investment?

Q: Solve the above two cases (the cases are independent). What is the accounting rate of return?…

A: The projected worth of the initial investment after a certain amount of time, taking into account…

Q: rate is 0 during the entire time period, how much is the above income stream worth right now? Please…

A: Present Value of Annuity: It represents the present worth of the future annual cash flows and is…

Q: Q7: You have just received OMR200M from a bank by requesting a loan. Without any deduction you have…

A: Using future value formula we can get period from formula.

Q: You have a cash of Rs. 100,000 today. What will be its value after 5 years if you make an investment…

A: Present Value = 100,000 Time Period (N) = 5 Interest Rate = 12%

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: 7. Suppose you find an investment account that you decide to contribute to every month over the…

A: Future value is calculated to determine the worth of an investment in the future date if a…

Q: If you invest £100 now and expect to receive £133.1 in 2 years time, what is the Internal Rate of…

A: Note: In Option, a) 0 is being used instead of the bracket, and accordingly it is 15% and not…

Q: years from today, and 2,000 four years from today. What will the value of your account be 4 years…

A: The future value is the estimated value of an investment that accounts for compound interest or…

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: Nominal annual interest rates are 7.3%. If a businessperson has an opportunity to invest $40,000…

A: Option 1: If 40,000 invested at 7.3% for 5 years: Future Value = Present Value * ( 1 + Interest…

Q: An investor receives $1,050 in 6 months in return for an investment of $1,000 now. What is the…

A: Future value = Present value * e(r*t)

Q: if you invest £721 for 2 years at a rate of 19% compound interest what will be its value at the end?…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: What will be the future worth of money after 1 year, if the sum of P25,000 is invested today at a…

A: Investment (P) = P 25,000 Monthly interest rate (r) = 1% Period in months (n) = 12

Q: An investment will have a future value equal to Php180,250 after 6 years. It has a nominal rate of…

A: The quarterly compounding refers to compounding 4-times a year. To reflect the compounding impact,…

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: What is the present value of an investment that promises to pay the investor $6,500 at the end of…

A: Per year payment(annuity) = $6500 Time =9 years Rate =14% *end of the year payment

Q: Find the rate of interest and final amount resulting from an investment of P800 at 12% simple…

A: Simple interest:   It is the return an individual gets on the amount invested by him at the end of…

Q: ent pays no income now. However, it is ex 1 500,000 at Year 3. This income will o t is expected to…

A: Given information : Inflow at the end of year 3 = RM 500,000 Perpetual income from year 5 = RM…

Q: s from today of the investment

A: Investment - A purchase made with the intention of creating income or capital growth is known as an…

Q: I want to answer this question

A: To find the fair value of the investment, we use the formula for the present value of a growing…

Q: : I buy an investment for GBP 2,345,678.91 and sell it one week later for GBP 2,350,000.00. What is…

A: Purchase =2345678.91 Sell =2350000.00 Period one week

Q: P. (d) e next 12 yeai

A: The amount that will be accumulated in the account after 12 years can be computed as follows :…

Q: If you invest $10,000 today at 4% how much money will you have in ten years?

A: We need to calculate the future value from the following details: Present value (invest today) =…

Q: If you invest $12,000.00 today, how much will you have in the future under each of the following…

A: Time value of money is a financial concept which is used to analyze various investments and…

Q: What rate of return would you need if you wanted to accumulate $1,000,000 in 25 years and invest…

A: Rate of return: It implies to the rate that is often expected or charged by the investor from the…

Q: 38. Compounding intervals (S2.4) You are quoted an interest rate of 6% on an investment of $10…

A: Future value is computed by following formula-FV = A × (1+r)nwhere,FV = future value A = Amount…

Q: You have an opportunity to invest $106,000 now in return for $80,100 in one yoar and $30.400 in two…

A:

Q: Q5. ASSUME YOU WILL INVEST IN A PROJECT THAT WILL PROVID 1000 JD AT THE END OF EACH YEAR FOR 5 YEARS…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: Solve the following problem. If P100,000.00 is invested in a bank at 4.5% simple interest annually,…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: we have $1,000 and we are offered to put it in investments that will double this money in 8 years,…

A: Future Value is the value of current investments at a certain future date at the assumed interest…

Q: 6. Assume the annual effective interest rate is i = 2%. An individual wants to invest a capital of…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

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

A: Given information: Cash inflow for next three years is $100 Cash flow for year 4 is $200 Cash flow…

Q: What is the present value if the money become Php158, 900 after 5 years of investment using 11.2%…

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

Q: Nhat is the rate of return (the interest rate) on an investment today of $30,626.24 if the company…

A: TIME VALUE OF MONEY    Time value Of Money(TVM) is the idea that cash you have now is worth more…

Q: WHAT WILL BE THE FUTURE WORTH OF MONEY AFTER 6 MONTHS, IF THE SUM OF P100,000 IS INVESTED TODAY AT…

A: Future worth of money at simple interest is calculated as follows Future value of amount invested =…

Q: If you invest $131,300 in a project which yields an annual return of $25,400, how many years will it…

A: Discounted payback period The discounted payback period is the period taken for the initial…

Q: At what annual interest rate must $232,000 be invested so that it will grow to be $417,000 in 12…

A: Present value = $232000 Future value = $417000 Period = 12 Years

Q: . What is my yield?

A: The formula for yield: (cash flow at endcash flow at the start-1)*yeardays YIELD:…

Q: will increase in value at a rate of 4% per year. If your expectations are correct, how much will…

A: Future value: It is the future worth of the investment growing at a particular rate of interest.…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.