You invest $2500 and in return receive two payments of $1800— one at the end of 2 years and the other at the end of 5 years. Calculate the resulting rate of return.
Q: account
A: Introduction: Investments are made by depositing a certain sum of money in the account. At the end…
Q: Calculate time value of money : If I am to receive $10k in 5 years, given a 5% rate of return, what…
A: Time value of money helps the management for decision making. as the value of money, today is high…
Q: 1. An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4,…
A: 1)Calculate the present and future value of an investment: Excel workings:
Q: Compute the future value of $536 invested every year if the appropriate rate is 11.2% and you invest…
A: Annual deposit (A) = $536 r = 11.2% n = 4 years
Q: f you put up $1,250 in a one-year investment and get back $1,350. What rate is this investment…
A: Time period is 1 year Present Value is $1,250 Future Value is $1,350 To Find: Rate on this…
Q: What is the present value of an investment of $5,000 per year for 8 years with 10% interest
A: Given information : Amount per year = $5,000 Number of years = 8 Annual interest rate = 10%
Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…
A: Future value of growing annuity The future value of a growing annuity is the value of money received…
Q: Stephen claims that he invested $6,000 six years ago and that this investment is worth $28,700…
A:
Q: You wish to have an investment that will bring about $50 000 in ten years, and the rate of return is…
A: Value of investments after 10 years=$50,000Rate of return(r)=8%Time(n)=10 years
Q: If you put $10,000 into an investment to fund your child's college education in 18 years, how much…
A: Generally, investment is done by individuals order to have sufficient money available for future…
Q: You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive…
A: Amount Investved today is $10,000 Cash flow at year 1 is $500 Cash flow at year 2 is $1,500 Cash…
Q: Suppose Karlem invested P20,000 for five years with simple annual interest of 10%. What is the…
A: Simple interest is a method under which interest is calculated on a principal amount. It calculates…
Q: You have paid $1,000 for an investment that will pay back $1,200 in 3 years. What interest rate does…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: sume that you plan to buy a condo 5 years from now and you need to save for a down payment. You plan…
A: solution given Annual deposit 2500 Interest rate 4% Number of years 5 years…
Q: In order to receive P12,000 at the end of three years and P10,000 at the end of five years, how much…
A: In the given given case it is assumed that compound interest mathod is used. Under compound interest…
Q: lion, with the first payment occurring immediately. money can earn 6% interest compounded annually…
A: in this we have to calculate present value of both option and see which option give better value.
Q: An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you…
A: Time value of money is a concept that deals with calculating the actual worth of money at present…
Q: Say you want to invest a certain amount of your salary each year. This year you take $2,500 out of…
A: The value of current payment or upcoming flow of payments at any future date when flow of payment…
Q: Suppose you have the opportunity to make an investment in a real estate venture that expects to pay…
A: Present value of annuity = P * {1-[1/(1+r)^n]/r} Where, P =Periodic Payment i.e. 750 r =rate of…
Q: If you save $5 per day in an account that earns 4.5% interest per year, how long will it take for…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual…
A: In this we have to calculate present value of all to get initial deposit.
Q: You invest $1000 into an account that accrues interest monthly at a rate of 0.16%. (a) How much…
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 want to buy a house within 3 years, and you are currentlysaving for the down payment. You plan…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: You have just completed your bachelor’s degree in business and applied for a job with a local bank.…
A: Hi, since you have posted multiple questions, I will answer only the first one as per our…
Q: You bought an asset for $10,000 and sold it for $20,000 after 10 years. What was the annual rate of…
A: Using excel RATE function
Q: An investment opportunity requires a payment of $910 for 12 years, starting a year from today. If…
A: The question gives the following information:
Q: Using the Rule of 72. Using the rule of 72, approximate the following amounts. If the value of land…
A: Rule 72, gives an approximate figure of how much time it will take to double an amount at a known…
Q: An example of how to calculate net present value is done using the following. Imagine you have been…
A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…
Q: a) Let's say you invest $10,000 into each account. What is the final amount after 10 years? b) How…
A: Future Value: It represents the future worth of the present amount and is estimated by compounding…
Q: If you invest $2000 now, and receive 3 yearly payments of $100 each year plus $2500 in the 3rd year,…
A: i) IRR is the discount rate at which Present Value of cashinflows is equal to Present Value of cash…
Q: If you deposit $1000 today in an account earning 10% APR compounded annually, and you deposit…
A: The future value of annuity due refers to the future value of a series of payments. The future value…
Q: uppose you buy a home and finance $285,000 at $2,233.17 per month for 30 years. What is the amount…
A: Interest paid = total payment - financed amount
Q: You are considering a safe investment opportunity that requires a $780 investment today, and will…
A: Investment (X) = $780 Payment after 2 years (P2) = $870 Payment after 5 years (P5) = $640 Let r =…
Q: Your cousin Vance tells you that you can invest $15,000 in his business, and he will pay you back…
A: An investment is refer as an asset purchased with intention to earn income at some time in future.…
Q: You expect to receive $150,000 per year on a contract that will last 5 years. You are trying to…
A: Present value of future cash inflows will be equal to the worth of contract today. Worth of…
Q: A civil engineer wants to deposit an amount P now such that she can withdraw an equal annual amount…
A: Annuity is the stream of recurring cashflow. present value of annuity formula: PVA=A×1-1+R-NR…
Q: Your investor promises you an investment opportunity that will yield a rate of return of 12⁹ per…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: Suppose you save $4,000 per year at the beginning of each year for 3 years and earn 5% interest per…
A: The formula for the calculation of future value of annuity due is as follows: Future value of…
Q: how much will your investment be worth after the last $385 payment is made? (b) What will be the…
A: Future value is the value of an asset possessed by an investor whose value grows and is measured at…
Q: nvestor feels that the cash flow from a property will enable his to pay a lender Rs. 15,000 per…
A: The given problem can be solved using PV function in excel. PV function computes loan amount for…
Q: An investment opportunity requires a payment of $750 for 12 years, starting a year from today. If…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: Suppose you would like to have P25,000 saved 6 years from now to pay towards your down payment on a…
A: Future value of ordinary annuity(payments at end of year) concept is used to calculated the annual…
Q: If you invest $10,000 at 8.125% interest compounded daily, how long will it take for you to…
A: Present value =$10,000 Future value = $15,000 Interest rate = 8.125% compounded daily So, daily…
Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300…
A: Formulas:
Q: You are considering a safe investment opportunity that requires a $710 investment today, and will…
A: Minimum acceptable rate of return It is the lowest rate of return which a project must be…
Q: Assume you are told that by investing $100,000 now, you will receive $10,000 per year starting in…
A: Given information: Investment amount is $100,000 Annual cash flow amount is $10,000
Q: En. Amwar wants to buy a house within 3 years, and is currently saving for down payment. He plans to…
A: Answer and calculations are given below
Q: Use the formulas A = P(1 + r/n)nt and A = Pert to solve this problem. You decide to invest $6000 for…
A: Amount of investment can be calculated using the following formulae: A = P(1 + r/n)nt A = Pert…
You invest $2500 and in return receive two payments of $1800— one at the end of 2 years and the other at the end of 5 years. Calculate the resulting
Solve it step by step, please!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose you invest $2,000 today and receive $11,000 in five years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $2,000 upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the amount you will receive each year?What is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is received 7 years from now and you receive a total of 25 annual payments? Could you please show how this can be solve by using Excel? Thank you.An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of year 6. If the rate of interest earned on the investment is 8%, what is the present value of this investment? What is its future value? How do you solve this with excel?
- Suppose you invest $3,000 today and receive $10,000 in 25 years. a. What is the internal rate of return (IRR) of this opportunity? b. Suppose another investment opportunity also requires $3,000 upfront, but pays an equal amount at the end of each year for the next 25 years. If this investment has the same IRR as the first one, what is the amount you will receive each year? a. What is the internal rate of return (IRR) of this opportunity? The IRR of this opportunity is%. (Round to two decimal places.) b. Suppose another investment opportunity also requires $3,000 upfront, but pays an equal amount at the end of each year for the next 25 years. If this investment has the same IRR as the first one, what is the amount you will receive each year? The periodic payment that gives the same IRR is $ (Round to the nearest cent.)An example of how to calculate net present value is done using the following. Imagine you have been given an investment opportunity wherein if you invest $1,200 today, you will receive $650 dollars at the end of each year for the next 5 years. You could separately choose to invest your money at 10% interest each year. Should you take the investment opportunity? To find the answer, use the NPV formula:Suppose you deposit $600 in an account that earns 4% interest. You receive an e-mail about a great investment opportunity. The message says you will double your money "in only two years!" What rate of return would be needed for that prediction to come true?
- Use the formulas A = P(1 + r/n)nt and A = Pert to solve this problem. You decide to invest $6000 for 5 years and have a choice between two accounts. The first pays 4% per year compounded monthly. The second pays 3.5% per year compounded continuously. Which is the better investment? By how much? Round to the nearest dollar.You have a chance to buy an annuity that pays $50,000 at the beginning of each year for 15 years. You could earn 10.0% on your money in other investments with equal risk. What is the most you should pay for the annuity? You are not required to show calculations. However to receive credit you must provide the inputs used (N, PMT, FV, I/Y, PV) to solve. If you utilize a template, you can copy and paste the section used in the submission. $418,334.37 $750,000.00 $380,303.98You are looking to invest your savings and want to earn a 10% annualized return. You can choose from the following three options:Project A: You will receive $100 at the end of two years.Project B: You will receive $50 at the end of one year and another $50 at the end of two years.Project C: You will receive $80 at the end of one year and another $20 at the end of two years.Calculate the present value of each option, which option should you pick?
- You invest in a project that is expected to pay you $960 every year forever. If the first payment to you occurs 3 years from today and the discount rate is 3.8%, then what is its value today (Round to the nearest dollar).You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1,500 two years from now, and $10,000 ten years from now. a. What is the NPV of the investment opportunity if the interest rate is 8% per year? Should you take the opportunity? b. What is the NPV of the investment opportunity if the interest rate is 4% per year? Should you take the opportunity? a. What is the NPV of the investment opportunity if the interest rate is 8% per year? The NPV of the investment opportunity if the interest rate is 8% per year is $. (Round to the nearest dollar.) Should you take the investment opportunity (Select the best choice below.) A. Reject it because the NPV is less than 0. B. Take it because the NPV is equal to or greater than 0. b. What is the NPV of the investment opportunity if the interest rate is 4% per year? The NPV of the investment opportunity if the interest rate is 4% per year is $ (Round to the nearest dollar.) Should…you have just won the lottery and will receive $460,000 in one year. you will receive payments for 21 years, and the payments will increase 4 percent per year. if the appropriate discount rate is 11 percent, what is the present value of your winnings? Please explain how to solve using the financial calculator to show and explain steps thanks