You have $1725 to invest. You know that a particular investment will double your money in five years. How much will you have in 10 years if you invest in this investment, assuming that the annual rate of return is guaranteed for the time period? Cevap:
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A: Present Value = 100,000 Time Period (N) = 5 Interest Rate = 12%
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A:
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A: Annual investment (A) = $15000 Growth rate (g) = 6% r = 7% n = 20 years
Q: You have $1725 to invest. You know that a particular investment will double your money in five…
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A: Here,
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A: Annuities are payment received at fixed intervals for fixed periods of time.
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A: Present Value: It is the current worth of future amount of money at a given pace of return.
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- How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one year from now and the rate is 8%?You have $1725 to invest. You know that a particular investment will double your money in five years. How much will you have in 10 years if you invest in this investment, assuming that the annual rate of return is guaranteed for the time period?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.)
- 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?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…Suppose you estimate that the effective rate of return (EAR) you can generate from your investment is 7%. You are planning to invest $20000 of monthly investment per month for another 10 years, starting one from from now (first investment payment will be made in a month). You are wondering how much your retirement fund will become in 10 years. Which of the following can help you figure out the problem? A) = FV(0.07, 10, 0, 30000000,0,0) B) = FV(0.07,10, 30000000,0,0) C) = FV((1.07^(1/12)-1, 120, 0, 30000000, 0) D) = FV((1.07^(1/12)-1, 120, 0, 30000000, 1) E) = FV((1.07^(1/12)-1, 120, 30000000,0,1)
- Suppose you are offered an investment opportunity that will pay $2,500 in five years if you invest $2,000 today. What is the implied rate of return? A) 4.56% B) 4.00% C) 5.00% D) 3.62% E)25.00%You have an investment opportunity that requires an initial investment of $5,000 today and will pay $6,000 in one year. What is the rate of return of this opportunity? The rate of return for this opportunity is ____%.You are considering an investment that will pay you $3,000 a year for 33 years, starting today. What is the present value of this investment if the appropriate discount rate is 8%? Use TMV calculator in explanation.
- You are looking at an investment that promises to pay $2000 per year forever! What is the value of this investment using an annual return of 8%?Consider an investment which pays $2,000 at the end of year 1, year 2, and year 3. In year 4, the investment will pay $5,000 and this payment will grow by 4.3% each year forever. If the appropriate interest rate is 7%, what is this investment worth today?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?