You are offered an investment that will pay you GH¢ 200 in one year, GH¢ 400 the next year, GH¢ 600 the next year and GH¢ 800 at the end of the next year. You can earn 12 percent on very similar investments. What is the most you should pay for this one?
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You are offered an investment that will pay you GH¢ 200 in one year, GH¢ 400 the next year, GH¢ 600 the next year and GH¢ 800 at the end of the next year. You can earn 12 percent on very similar investments. What is the most you should pay for this one?
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- You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $2,900 today and both accounts have an annual interest rate of 8 percent. How much more interest will you receive in the 11th year in the account that pays compound interest?You expect to receive $10,000 at graduation in two years. You plan on investing it at 9 percent until you have $60,000. How long will you wait from now?Suppose you are committed to owning a $343,000 Ferrari. If you believe your mutual fund can achieve an annual rate of return of 12.9 percent and you want to buy the car in 9 years (on the day you turn 30), how much must you invest today?
- Suppose you invested $94 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $0.50 today and then you sold it for $95. What was your dividend yield and capital gains yield on the investment?What's the value to you of a $1,000 face- value bond with an 8% coupon rate when your required rate of return is 15 percent?A man invests his savings in two accounts, one paying 6 percent and the other paying 10 percent simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. His annual interest is 6534 dollars. How much did he invest at each rate? Your answer is total in the account paying 6 percent interest is total in the account paying 10 percent interest is
- You are going to invest $1,500 today in a fund today. After 10 years, you want to have exactly $2,500 in the fund. If the interest rate is compounded annually, what interest rate is needed to achieve this?What advantage do you have if you begin investing for retirement at a young age? There is no advantage to starting to invest for retirement at a young age, a long time to take advantage of the time value of money, a guaranteed investment portfolio, a short time to take advantage of the time value of moneyThe following table shows the average life expectancies in several countries. Assume that all premiums you calculate are based on end-of-month deposits in a fund yielding 4.8% annual interest compounded monthly to be paid out when a person reaches the life expectancy. HINT [See Example 2.] Country Japan Canada U.K. U.S. Mexico China India Life $ Expectancy: 81 Male Life Expectancy: Female 87 80 84 80 83 76 81 73 79 75 80 70 72 Calculate the life insurance monthly premium that a 30-year-old female in Japan would pay for a $3,000,000 policy. (Round your answer to the nearest cent.)
- At what point in one’s life is it safest to try a risky investment? Closer to or further from retirement? Explain your logic.If the interest rate is 3 percent, the present value of $900 received at the end of four years is: Multiple Choice $792.00. $799.64. $873.79. $927.40.Angela puts $5,000 in a savings account that pays 5 percent per year. The future value of her money one year from now is $ As the interest rate (Enter your response as a whole number.) the future value of Angela's $5,000 savings will increase.