You plan to invest $50,000 today at an annual interest rate of 12% over 5 years. What the future value of your investment if interest is compounded. a. Annually b. Semi-annually

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: How much should be invested each year for 10 years to provide you with $7000 per year for the next…

A: Annuity means no. of payments which are equal in size and made at equal length of intervals. Person…

Q: You deposit $19,000 today in an investment account and the annual rate of return is 12%, what will…

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

Q: You have discovered an investment opportunity that earns a 3% rate of interest compounded…

A: Present value is the equivalent value of future money today that is going to be received in the…

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: What is the future value of $13,000 to be received at the end of each quarter over a period of 10…

A: Quarterly receipts = $13,000Period = 10 yearsInterest rate = 6%

Q: How much should an investor pay to receive $12,000 three years (36 months) from now, assuming that…

A: RETURN 9%/12 0.75% NPER (n)  36 PMT 0 FUTURE VALUE 12000     Return= Rate

Q: An investment pays an annual cash flow of $1 forever. The appropriate discount rate is 4% per year.…

A: Annual cash flow (C) = $1Discount rate (r) = 0.04Present value = ?Present value will be the…

Q: A. Assume that you have $7500 to invest. You plan to invest it for 10 years at a rate of 7% per…

A: Future Value = Present Value * (1 + Interest Rate)^Time

Q: What will be the value of these deposits 12 years later if earning 9% APR compounded annually?

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: ou want to have $1,970,000 at the end of 22 years. You have $6,000 to invest now, and you will…

A: Future value includes the amount of deposits made and the amount of compounding interest accumulated…

Q: What is the future value of a stream of $800 annual payments worth to the investor at the end of 10…

A: The FV of an investment refers to the cumulative worth of the investment's cash flows at a future…

Q: $15,000 is invested for 5 years at an annual simple interest rate of 17%. a) what will you earn in…

A: Interest = Principal * Rate * Time

Q: You have 1,500 to invest today at 7% interest rate Compounded annually. a- Find how much will you…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: What is the present value of an investment that promises to pay you $ 1, 000 in five years if you…

A: Here, The present value is PV. The future value is FV. The maturity is n. The interest rate is r.

Q: If you invest $10,000 at an interest rate of 8.00% (annual rate) compounded quarterly, how much…

A: Given: Investment amount = $10000 Rate = 8.00% compounded quarterly To compute the amount of…

Q: You plan to invest K10, 000 on the first day of every year for the next 6 years. If the interest…

A: The worth of a present asset at some point in the future, based on an assumed growth rate, is known…

Q: Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

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: The amount to be paid for the investment is calculated as the present value of annuity plus the…

Q: If you invest $154 at an interest rate of 6% (annual rate) compounded annually, how much interest…

A: Interest earned is the interest which is applied on the principal. It is the interest for using…

Q: What is the value today of receiving $4, 500 at the end of each year for the next 6 years, assuming…

A: Present value is the equivalent value of the future money based on time value of money that is…

Q: How much should be invested each year for 10 years to provide you with $8000 per year for the next…

A: Present value includes the value without interest rate and future value includes the value with…