Which of the following investment opportunities all maturing at the end of 2 years and requiring the rate of return of 6% would you choose? Investment Compounding Future Value Annually Monthly Quarterly 1 P1,123,600.00 2 P1,127,159.78 3 P1,126,492.59
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A: Effective annual rate = 14%
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A: Present Value = $1,000 Interest Rate = 12% Time Period = 6 Years
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A: Future Value = Present Value x (1 + r)^n Compounding Frequency = monthly
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A: we need to use RATE function in excel to calculate rate of return. Formula is =RATE(NPER,PMT,-PV)
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A: Cash inflow for first three years = $3500 Cash inflow for the following two years = $4000 Discount…
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A: given, Fv = $1000 n=7 m=52 r=12%
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Q: What is the future value of a $12,500 investment, earning eight-percent interest per period, after…
A: Given details are : Present value of investment = $12500 Interest rate = 8% Time period = 3 years…
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A: Given: Rate =14%/12=0.0116666Pmt =0PV =-1FV=6
Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…
A: Future value after 12 years (FV) = $1,000 Quarterly period (p) = 48 (i.e. 12 years * 4) Quarterly…
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A: Future value = current value*(1+ rate/12)^n Future value = 6 times the current value = $6 Current…
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A: Given information : Time period = 4 years Interest rate = 10 % Future value of investment = $1000
Q: Which of the following investment opportunities all maturing at the end of 2 years and requiring the…
A: Investment Compounding Future Value 1…
Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…
A: Future compounded amount(A)=PV1+rnnt
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A: In this we need to find the effective interest rate and amount of deposit required today.
Q: Calculate, to the nearest cent, the future value FV of an investment of $10,000 at the stated…
A: given, pv = $10,000 r= 0.2% n = 8 years = 8 x 12 = 96 months
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A: Given: The investment gives 1000 in two years means 1000 in year1, 1000 in year2 and 3000 at the…
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A: The Future Value Formula FV=PV(1+i)n Where: FV = future value PV = present value i = interest rate…
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- Find the IRR for an investment that has an initial outlay of 25,000 and is expected to achieve 30,000 after 7 years. O a. 1.4% Ob. 2.6% O c. 3.1% Od. 4.8% O e. None of the above Next pageanswer if its true or false 1) Based on the following information calculate the value at time 1 of the investment made at time zero. This future value is between 103 and 105. time discount investment (years) rate 6% 100 1If a $15,000 investment earns a 6 percent annual return, what should its value be after 4 years? Use Exhibit 1-A. Multiple Choice O O $18,930 $18,600 $15,045 $19,900 $15,900
- Consider the following investment alternatives: Investment Rate Compounding 6.917% Annual 6.7123% Daily Quarterly Monthly 6.792% 6.7775% Which alternative offers you the highest effective rate of return? O A. Investment A O B. Investment B O C. Investment C O D. Investment D ABCDProblem 2 ABM Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investment amount 450,000 (2022) Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14% a. NPV for the perio 2023 through 2029; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate.Consider the following investment alternatives: Compounding Annual Investment A B Daily Quarterly Monthly The highest effective rate of return you could earn on any of these investments is closest to: C D Rate 6.102% 5.9471% 6.015% 6.0087% OA. 6.102% OB. 6.152% OC. 6.127% OD. 6.177% Q Search
- uestion 1: Solve the following TVM problems using Excel formulas. You MUST use Excel formulas (FV or PV) to receive credit. ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? C. Suppose you invest $ 570 monthly. What is the future value of the investment in 29 29 years, if interest at + 5% is compounded monthly? 5 6 7 8 19 20 21 22 23 24 25 26 27 28 29 Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A 国 W X7. Future values (S2.1) Compute the future value of a $100 investment for the following combinations of rates and times. = 6%, t = 10 years. b. r= 6%, t = 20 years. c. r = 4%, t = 10 years. d. r = 4%, t = 20 years. a. r =A customer is offered an investment where interest is calculated according to the force of interest,t {0.02t 0 ≤ t ≤ 3, 0.045 t > 3If the customer invest GH¢1000 now, what rate of interest, compounded quarterly is earned over the first 4 year period.
- akeAssignmentMain.do?invoker%3D&takeAssignmentSessionLocator=&inprogress%3false hapter 11 Lab Application 全 回 Sign ia еBook You have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the value of that investment account at the end of that period? (Click here to see present value and future value tables) Amounts of Value at the End Investment Rate Times of the Period $7,000 20% 16 years 612,094.91X $11,000 15% 9 years 184,644.26X $15,000 12% 5 years 95,292.71 X $36,000 10% 2 years 75,600.00 Feedback > Check My Work For each scenario, use the rate and time components to use the applicable time value of money table to determine the needed factor. Multiply the investment amount by the future value factor to determine the value of end of the period. 6:38 PM G O 4) ENG 13 68°F Sunny 10/26/2021 O P Type here to search hp %24 %24 %24Cash fllow End of year Amount Appropriate required return 1 0 2 0 3 0 4 to 15 0 4% 16 120000 a) Find the value of the bellow bond in order to assist ne with the investment decisionTERM STRUCTURE Using Pure Expectations theory to predict future rates: I ■ Suppose: 1¹₁= 1%, 1¹₂= 2%, 113= 3% What does that imply about the 1-year forward rate in 2 years (f₁), and the 2-year forward rate in 1 year (₂f₂)?