You have $10,000 to invest for five years. - How much additional interest will you earn if the investment provides a 5% annual return, when compared to a 4.5% annual return? • How long will it take your $10,000 to double in value if it earns 5% annually? What annual rate has been earned if $1,000 grows into $4,000 in 20 years?

Q: An investment offers $12,000 per year for 20 years, with the first payment occurring one year from…

A: The time value of money concept holds the utmost relevance while determining the future value and…

Q: account

A: Introduction: Investments are made by depositing a certain sum of money in the account. At the end…

Q: You are going to invest $6829 in 1 years and $7200 in 4 years.  If you expect to earn a return of…

A: The time value of money is a fundamental concept in finance that recognizes the idea that money…

Q: How much will you have saved after 6 years by contributing $1,200 at the end of each year if you…

A:

Q: If you invest $1,000 each month for five years, what will be the value of the investment after five…

A: The below formula can be used to calculate future value:

Q: You are looking at an investment that promises to pay $2000 per year forever! What is the value of…

A: A cash flow that goes on forever is called a perpetuity.Here the cash flow of $2000 per year forever…

Q: How much must be invested today to have $1,000 in two years if the interest rate is 5%? please show…

A:

Q: How much money should you invest now to ensure $600 per year for 9 years starting next year. The…

A: Given Information: Rate of interest - 16% Annual amount - $600 per year No. of years = 9 To compute:…

Q: How much should you invest each month in order to have $400,000 if your rate of return is 3.2%…

A: We need to use future value of the ordinary annuity formula to calculate monthly payment to get the…

Q: How much will you have in 40 years if you save $3,000 each year and your account earns 8% interest…

A: In the given question we require to calculate the future value of payment made every year of $3000…

Q: annually

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

Q: You would like to have $100,000 in 10 years’ time. How much should you save each year if the…

A: The future value = $100,000 Time period = 10 years  Interest rate = 5%

Q: Suppose you will need $20,000 in 3 years. How much must you invest per month in order to have…

A: Present value is the current worth of the amount that is expected to be received in future date.

Q: If you invest $600 today at a rate of 14%, how much will you have in the account after 15 years?…

A: Present Value = pv = $600Interest rate = r = 14%Time = t = 15 years

Q: The initial cost of an investment is $60,000 and the discount rate (cost of capital) is 8%. The…

A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…

Q: 3. Suppose one plans to invest $750 a month this year, $800 a month next year, $850 a month the year…

A: Future value of growing annuity is the future value of current stream of cash flows that keeps…

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: Roughly how many years would urn $1,000 into $16,000 if you can invest the money at 9% per year,…

A: Time value of money:According to the "time value of money" hypothesis, a dollar received now is…

Q: How much will you need to invest today at 10% to have $10,000 six years from today?

A: Using excel PV function Where, PV = present value NPER = no. of years FV = future value

Q: Suppose that you plan to invest $1500 at the end of each of the next 9 years, and you want to have…

A: Rate of return refers to the minimum return to be earned by the investors on the initial investment…

Q: What is the present value of receiving $4,000 per year for 10 years? Your annual required rate of…

A: It can be calculated using PV formula in excel PV (rate, nper, pmt, [Fv], [type]) Rate The interest…

Q: 22) An investment pays you $5,000 at the end of each of the next five years. Your plan is to invest…

A: The amount after 5 years can be computed using the future value formula.

Q: What single investment made today, earning 10 % annual interest, will be worth $10,000 at the end of…

A: A) The present value of a future value can be calculated using the formula below: Given; FV = 10000…

Q: How many years will it take for $14,000 to grow to $43,000 if you can earn an average rate of 8.8%…

A: Given information: Future value of amount is $43,000 Present value is $14,000 Average rate is 8.8%

Q: how much should you invest now in a single investment if you expect to withdraw $45,000 in 9 years…

A: Step 1: Introduction Present Value: The value of the money identified today for the money/sum of…

Q: You are going to invest $9237 today and $9695 1 year from today.  If you expect to earn a return of…

A: Step 1 Future value is the amount of money that, with time and an interest rate, is invested now and…

Q: a) If you invest $100 every year for the next 20 years starting one year from today and you earn…

A: The Future Value of the Annuity refers to the sum value of all the payments which is occurred…

Q: saver wants $100000 after 10 years and believes it is possible to earn an annual rate of 8% on…

A: Amount required = FV = $100,000No of years = nper = 10 yearsInterest rate = rate = 8%Yearly…

Q: If u make an investment of $3500 and the investment loses a continuous 5% each year, what will the…

A: Given information: Present value of investment is $3,500 Investment loses a continuous 5% each year…

Q: how much will a single investment of $10,000 be worth in 10 years

A: Time value of money(TVM) means that the amount of money received in the present period will have…

Q: If you would like to have $20,000 in 5 years, how much should you invest today if your investment…

A: Present value is the value today of future cash flows discounted at the required rate of return for…

Q: If you borrow $3000 at 14% simple interest for 10 months, how much will you owe in 10 months? How…

A: Simple interest = A × R × T  Here A = Amount borrowed '         R = Rate of interest          T =…

Q: You’re buying your first house for $180,000, giving $35,000 as down payment. The amount you will…

A: The amount of interest payable over the term of the loan and the loan amount due is equal to the…

Q: How much time will it take you to accumulate $500,000, assuming you invest $15,000 today and $150 /…

A: The time value of money concept states that the value of a certain amount of money on the future…

Q: You purchase an investment for $1,000. You expect it will increase in value at a rate of 9% per…

A: Initial Investment is $1,000 rate is 9% per yeat time period is 12 years   To Find:- Worth of…

Q: You are going to invest $5405 in 3 years and $7923 in 6 years.  If you expect to earn a return of…

A: Future value of investment amount is calculated as Future value = Value of investment×1+rn Where, r…

Q: Suppose you save $100 per month. How long will it take you to accumulate $10,000 if the annual…

A: Following details are given to us in the question : Monthly saving = $100 Future value = $10000…

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.