22-A person invested SR 100,000 in a fund that pays 10% compounded annually. His netrevenue the 1" year was SR 25,000. Each year, thereafter, his revenue increased SR1,000/yr. After EOY 10, his revenue started decreasing by 6%. What is the present wof his investment over a 20-year period?a. SR 137,525.47b. SR 61,019.95C. SR 237,525.47d. SR 176,505.52

Present Value: It is the present worth of the future cash flows discounted at a specific interest…

Answered: year 1,000/yr. After EOY 10, his…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

If you invest $2,000 per year for 9 years and earn a 5% return on your investment during that period, how much will you have accumulated by the end of the nine-year period? (a) $2,000 (b) $11,970 (c) $18,000 (d) $22,054 (e) $30,000
2. You invested $39,000 in Yug Industries at an annual interest rate of 5% compounded continuously. Find the amount received after a six- year investment. Don't forget to show your work. Round your answer to the nearest cent.
4. Find the annualized returns for the following set of investments. Asset A HPR 10% В -6 8 Ꭰ 15 E 5 BCD Holding Period 8 months 15 months 2 Years 3 years 18 weeks
d. How much do you have to invest today and every six months thereafter for the next 10 years if you want to accumulate a total of $400,000, 10 years from today in an investment paying 10% semiannually? Do not answer in image format
6. The future value of $10,000 after 11 years, growing at the rate of 12% per year is (a) $34,237.40 (c) $34,785.50 (b) $34,522.71 (d) $34,984.51
Problem #1. You invested $150 at the end of every month for 10 years at 7% interest compounded monthly. Use formulas (not tables) to calculate (a) How much your investment is worth after 10 years. Show your work. (b) If you had invested the money at the beginning of each month rather than at the end, how much would be in your account? Show your work.
1) A company is expected to result 2900$ savings first year then increase by 200$ annually, if the rate of interest is 11% and number of years are 6 then what will be the EUAB? Select one: а. 3340$ b. 3311$ с. 3109$
You invested 7,667.40 into an account that pays 9.15% interest. How much money will you have in 40 years? 254,447 160,582 182,664 318,656 201,427
An investment was made two years and three months ago at 7% simple interest. The investor has just received the principal amount of the investment along with the P 30,000 interest. What is the principal amount of the investment?
An investment of $80,000 yields a net income of $10,000 per year. How many years does it toketo recover the initial investment ot nominol interest of 6.5% compounded quarterly? You canuse the spreadsheet functions to solve this question or trial and error procedurea. 16 b.12c.15d.14 e.11

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

year 1,000/yr. After EOY 10, his revenue started decreasing by 6%. What is the present w of his investment over a 20-year period? a. SR 137,525.47