You have been approached to buy an investment which will pay you $1,000 at the end of 4 years. The investment will also pay you $30 per annum (at the end of each year) as well. How much is this investment worth today? Assume interest rate of 8% How should i approach this? is the $30 per annum included in the PV?

Q: Suppose the interest rate is3.6%. a. Having $650 today is equivalent to having what amount in one…

A: Given: Present value = $650 Periodic interest rate = 3.6% per period (annum)  n= number of periods =…

Q: Suppose an investment will pay $19,000 in 16 years from now. If you can earn 10.15% interest…

A: Given information: Future value of investment is $19,000 Number of years is 16, Interest rate is…

Q: (b) Once upon a time, a bank was advertising an interest rate for savings account of i% per year. A…

A: Information Provided: Interest rate = 6%   NOTE: As per our policy, we only answer one question…

Q: $27,831.47 $29,851.84 E S29,083.89 $30,729.84

A: The concept of the time value of money states that the current worth of money is more than its value…

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: which of the following investments that pay will $5000 in 12 years have a higher price today?

A: Present Value: It is the present worth of the future amount and the present value is computed by…

Q: you wish to purchase real property. the lender will give you a 250000 fixed rate 30 year mortgage at…

A: Mortgage amount = $250000Mortgage term = 30 YearsRate of interest = 3.5% per annumwe are required to…

Q: You have an investment opportunity that promises to pay you $12,979 in four years. Suppose the…

A: GIVEN VALUES: Present Value: 9,5402Future Value: 12,9793Number of periods (n): 4 years Step 1: The…

Q: Suppose you have a financial investment opportunity for which if you invest $2,000 today, you will…

A: Present value of deposited amount (PV) = $2,000Annual payments received (PMT)  = $100Lumpsum amount…

Q: 8. You have just received a windfall from an investment you made in a tri d's business. She will be…

A: The concept of time value of money will be used here.   When cash is received at different points in…

Q: a. What is your annual payment on the loan? b. Construct a mortgage amortization. c. What fraction…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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: You are considering two investment options. In option A, you have to invest RM2000 now and RM1000…

A: There are multiple methods used for analysis and evaluation of capital investment projects. Some of…

Q: You purchased an FRN with a maturity of 7 years, pays USD SOFR annually, and has a face value of USD…

A: Floating rate notes are debt instruments issued by financial institutions, governments and…

Q: Suppose you invest $210,000 in an annuity that returns constant annual payments over 6 years, with…

A: We will apply the concept of time value of money in this case.In an annuity you make an initial…

Q: An investment offers $6,600 per year, with the first payment occurring one year from now. The…

A: Annual payment (C) = $6,600 Required return (r) = 0.05 Present value or value today = ?   Present…

Q: An investment opportunity requires that you deposit $1000 a year for 5 years. At the end of this…

A: Using excel PV and FV function

Q: ou can assume that all payments are made at the beginning of the period and use "1" for the "type"…

A: a. Future value$ 81,102.53b. Future value$ 85,289.85c. Future value$ 444,644.11Explanation:The above…

Q: 23. If the property above is being purchased at an 8% cap rate, assuming the same loan information…

A: Here, Expected NOI is $200,000 Borrowed Amount is $1,500,000 Interest Rate is 5% Time Period is 30…

Q: An investment offers $9,200 per year for 17 years, with the first payment occurring one year from…

A: STEP 1 Given a specific rate of return or discount rate, an annuity's present value (PV) is the…

Q: You are valuing an investment that will pay you nothing the first two years, $19,000 the third year,…

A: Present Value is the current price of future value which will be received in near future at some…

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.