Suppose you are 20 years old today and want to have OMR 500000 saved by the time you reach 30 years. If you receive 5% interest on your money how much would you have to invest to reach your goal? Select one: O a. 317428.50 b. 306959.63 O c. None O d. 594620.15 O e. 628520.75

Q: You want to retire in 25 years. You currently have $200,000 saved and you believe you need…

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

Q: Suppose you just won the state lottery, and you have a choice between receiving $3,550,000 today or…

A: Choice-1 Amount to receive today is $3,550,000 Choice -2 Annuity amount is $250,000 Time period is…

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

A:

Q: How much would you be willing to pay today for an investment that would return P1,250 each year for…

A: The amount to be paid today is calculated as the present value of annuity

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: You have just made your first $ 200,000 yen contribution to your retirement account. Assuming you…

A: The future value of a cash flow is the future worth of a cash flow at a certain rate of interest and…

Q: You need to have $150,000 in 10 years to buy a house. You already have $70,000. What would be the…

A: The rate required to earn the future value using the present value is the compounding rate.

Q: O4(A) Future value ol Annuily In you invest $10,000 today at o ănd expect to use it 20years it ros…

A: Future value: It is a value of any current asset, depending on the taken rate of the growth, at any…

Q: Approximately, what is the value of (P) if F=114120, n=8 years, and i= 7% per year? O a. 79703 b.…

A: Present value is the current value of certain amount of future money at a required rate of return or…

Q: What would you pay for an investment that pays you $5000000 after fifty years? Assume that the…

A: Present Value  = Future Value /( 1 + r)n Where, r = periodic interest rate = 8% ( assuming 8%…

Q: You just inherited some money, and a broker offers to sell you an annuity that pays $19,245 at the…

A: Present value (PV) could be a budgetary concept utilized to decide the current worth of future cash…

Q: If you were saving up to buy a boat for $200,000 in ten years and feel confident that your invested…

A: Given,  Amount required is $200,000 Rate is 10% Number of years is 10

Q: You have $13,900, you decided to invest it in an investment plan that will pay you 13% interest for…

A: Using the compounding technique, the future value of a sum has been used to know the future value of…

Q: How much would $9,000 t8 be received at the end of 50 years be worth today if the required rate of…

A: Using excel, FV is 9,000 Rate = 7.5% Time (nper) = 50 years PMT = 0 PV = ?

Q: how much do you need to save today?

A: Given : Rate of return (r) = 8% Savings required at the end of the next 3 years are RM1,500,…

Q: 2. An investment promises to pay a perpetuity of $100 per year starting from today. If the discount…

A: A perpetual annuity is a never-ending series of equal cash flows where the investment is done today…

Q: If you invest 5000 dollars today at a compound interest rate of 9 percent, what will be its future…

A: FUTURE VALUE  FORMULA: FV= PV ×CVIFR,N FV = FUTURE VALUE PV = PRESENT VALUE

Q: Compute how much money you would need to invest each year in the future for u+ 20 years in order to…

A: Solution:- When an equal amount is invested each period, it is known as annuity. We know, future…

Q: 6: You invest $10000 today for 9 years at 6% interest. What is the total amount of interest on…

A: Interest on investment refers to the return or profit earned from investing a certain amount of…

Q: Choose the option to correctly complete the following sentence. Today is January 1, 2020. On the…

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

Q: What is the relationship between present value and future value?

A: Future Value : FV is that value which will be received in near future. Present Value : PV is that…

Q: If you want to withdraw $4500 in each year for the next 5 years when the interest rate is 20%, what…

A:

Q: How much would $1. growing at 6.8% per year, be worth after 75 years? Select the correct answer. O a…

A: We need to use future value formula below to calculate worth after 75 years.FV =PV(1+i)nWhereFV…

Q: 5. a. b. C. d. e. Your investment advisor wants you to purchase an annuity that will pay you RM…

A: An annuity is a series of equal cash flows calculated at a predetermined interest rate over a…

Q: 6. Future values (S2.1) If you invest $100 at an interest rate of 15%, how much will you have at the…

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

Q: What is the amount that an investor wants to pay for a perpetuity that will provide $20,000 per year…

A: Perpetuity is referred as the security which pays a never-ending stream of cash flows. It is the…

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 is the difference between simple interest and compound interest? Suppose you have $500 to…

A: Difference between Simple Interest and Compound interest Simple Interest is the interest that one…

Q: You are making plans for your retirement. You have just turned 30 and want to retire on your 65th…

A: TVM refers to the capacity of money to earn interest because money earned earlier is considered more…

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: what annual interest rate must you get if you need $7000 in 4 years and have $5000 to invest now

A: Invest = $ 5000 Future value = $ 7000 Period = 4  Years

Q: What's the rate of return you would earn if you paid $3,480 for a perpetuity that pays $70 per year?…

A: The objective of this question is to calculate the rate of return on a perpetuity. A perpetuity is…

Q: Approximately, what is the value of (P) if A=600, n322 years, and i= 21% per year? Select one: O a.…

A: The answer is as fallows

Q: If you want to withdraw $4500 in each year for the next 5 years when the interest rate is 20%, what…

A: Annual withdrawal (C) = $ 4500 Interest rate (r) = 20% Period (n) = 5 Years

Q: d. You just received an inheritance worth $150,000. You want to retire in 25 years and you plan to…

A: The time value of money is a foundational finance principle that states that the worth of money when…

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: hat rate of return did you earn on this investment?

A: Return can be calculated as: Return = Selling Value - Buying ValueBuying Value

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: Assume an investor wishes to have £80,000 ten years from now as a retirement fund. How much money…

A: Given a certain rate of return, present value (PV) is the current worth of a future sum of money or…

Q: Determine the future worth in year 9 for savings of $12000 now and $7000 two years from now. i= 10%…

A: Future value=Present Value(1+r)n where  r=Interest rate n=number of years

Q: Compute the future value of $396 invested every year if the appropriate rate is 11.2% and you invest…

A: The future value of the annuity is the total value of all the payments which occur regularly at a…

Q: What is the future value of an investment

A: The future value of an investment forecasts the expected value of an investment at a given future…