Show graphically how $1,000 invested today will grow over the next 50 years if you earn 8% simple, or compounding, rate per annum on the investment.
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- How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?Suppose you save $2,800 ayear for 43 years into an investment account that earns 8.5% return, how much will you have at the end of the periods? Formula? Excel Function?Suppose that you plan to invest $1500 at the end of each of the next 9 years, and you want to have accumulated $19,500 at the end of this period, what rate of return would you need to achieve? 10% 9% 8% 11% 12%
- Suppose you make a one-time $ 8,000 investment into an account that yields a 12% annual return. If you keep the account for 10 years, what should be the account balance? Round your answer to 2 decimal placessuppose that $5000 is invested each quarter, for the next 20 years. what is the future worth if the investment earns an annual rate of 9% compounded quarterly?If you pay $500 for an investment that returns $600 in 1 year, whatis your annual rate of return? (20%)
- Consider an investment that offers $4,000, $5,000 and $6,000 in the next 3 years, with the first payment occurring one year from now. The required return is 7%. What is the present value of this investment?Suppose you have an investment offer that guarantees an average investment gain of $1,000 per year. (a) What is the average rate of change (in dollars per year) of this investment? $? per year (b) If the value of the investment today is $10,000, what will be the value (in dollars) of the investment in 2 years? $?You currently have $8,700 to invest. You can invest the full amount now for a period of 9 years at which time you want to have $15,000. Approximately what rate of return is needed to accomplish this investment goal? O 6.50% O 6.24% O 4.65% 5.59%
- Today, you decide to invest $7,000 for 29 years. If you can earn 9.05 percent for the first 19 years and 12.56 percent for the remaining 10 years, what is the growth (compound) rate you earn over the entire 29 year investment horizon? O 10.65% O 9.75% O 11.34% O 10.25% O 10.81 %You wish to have an investment that will bring about $50 000 in tenyears, and the rate of return is 8% per annum. Required:a. In term of time value of money, what is the amount of $50,000 represent?b. How much do you need to invest now if the rate is compounded annually(to the nearest dollar)?c. If you have $50,000 now and put the sum into a bank account that pays5% per year. How much will you have in 8 years if the rate is compounded semiannually, quarterly, monthly and daily (to the nearest dollar)?You wish to have an investment that will bring about $20 000 infive years, and the rate of return is 8% per annum. Required:a. In term of time value of money, what is the amount of $20,000 represent?b. How much do you need to invest now if the rate is compounded annually(to the nearest dollar)?c. If you have $20,000 now and put the sum into a bank account that pays5% per year. How much will you have in 6 years if the rate is compounded semiannually, quarterly, monthly and daily (to the nearest dollar)?
