You have $1000 today and you want to grow them to $2000 in three years, how much interest rate you should get to achieve your goal?

Q: You just found the perfect house. However, 15.50 percent per year to buy the house You need to get a…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: You have $100 to invest. If you can earn 12% interest, about how long does it take for your $100…

A: Time value of money-It is based on the concept that money earned today is worth more than similar…

Q: An investment will pay you $10,000 in 10 years and it also will pay you $400 at the end of each of…

A: An annuity refers to a series of payments that regularly made at equal intervals. Present value (PV)…

Q: You are thinking of building a new machine that will save you $ 4,000 in the first year. The machine…

A: First-year savings  = $4,000Decline rate = 3%Interest rate = 7%

Q: As an investor, you have an opportunity to make an investment in real estate costing $100,000 today.…

A: The present value (PV) is $100,000. The monthly income (PMT) is $650. The period is 20 years and the…

Q: annually

A: Formula to calculate r: r = (FV/PV)^1/n - 1

Q: Assume you have $100,000 now. If you get an average annual return of 4%, how many years will it take…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per period i.e. 4%n = no. of…

Q: ou wish to have an investment that will bring about $50 000 in ten years, and the rate of return is…

A: Future value is defined as the amount that one gets at the end of the maturity period. An investment…

Q: Suppose you invest $2,000 today and receive $11,000 in five years. a. What is the internal rate of…

A: IRRIt is a capital budgeting technique of a discounted cash flow that gives a rate of return is…

Q: You just paid $551 for a security that claims it will pay you $1910 in 15 years. What is your annual…

A: Annual rate of return means the percentage of gain on something annually. It is a measure of yearly…

Q: You have $10,000 to invest for five years. - How much additional interest will you earn if the…

A: Given Information : Amount invested - $10,000 (Present value) Rate of interest (r) - 5%/4.5% Time…

Q: How much would an investor be willing to pay for an investment that guaranteed payments of $4,000 at…

A: Using excel PV function Where  PMT is a periodic payment NPER is no. of periods RATE is rate per…

Q: Your organization has been asked to invest in a continuing care retirement center. Your investment…

A: Profitability index = Present value of cash flow / present value of investment

Q: Michelle is considering buying an asset today that will make a payment every quarter forever.  The…

A: Growth rate of the payments states the compounded annual rate of the growth of business alone with…

Q: If you invest $2000 at 12% annual interest rate, compounded weekly, how much would you have after 5…

A: The formula to be used is future value of a single payment

Q: Suppose you are 25 years old and just got hired by a company. Your salary next year will be $60,000.…

A: The FV of an investment refers to the amount of the accumulated cash flows assuming they grow at a…

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: If you could invest the mon

A: The present value of the amount to be invested today can be computed as follows using the Texas BA 2…

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: The price of a car you want is $36,000 today. Its price is expected to increase by $1000 each year.…

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

Q: You plan to retire in 30 years and want to accumulate enough by then to provide yourself with…

A: Future withdrawal amount = $30,000 Time Period after retirement = 15 Years Retirement Time = 30…

Q: Suppose you want to save up $100,000 to buy a house in 10 years. You plan to invest a lump sum…

A: Relation between present value and future value With present value (PV), annual interest rate (r)…

Q: Suppose you have an account that will grow to $253,000.00 in 25 years. It grows at 7.5% annual…

A: Future value is the value of future cash flow at a certain period after applying a discount rate,…

Q: How long you need to wait to make $3000 grow to $6000 if you can earn 10% on your money?

A: Formula: Future value = Present value *(1+ Interest rate)^ years

Q: You want to invest $100.00 for three years at 10%. What will the $100 dollars grow to?

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Kant Miss Company is promising its investors that it will double their money every 4 years. What…

A: The question is not clear on which methods to use, hence have used both 72 and time value equation…

Q: Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective…

A: As per the given information: Deposits made each year - $1000  Effective annual return - 9.25%…

Q: How much time will it take you to accumulate $625,000, assuming you invest $15,000 today and an…

A: The problem is asking us to calculate the time it will take to accumulate a certain amount of money,…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.