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- If you would like to have $20,000 in 5 years, how much should you invest today if your investment earns 12% per year and compounded annually?
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityIf you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
- How much money should you be willing to pay now for a guaranteed $500 per year for 10 years starting next year, at a rate of return of 15% per year?If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and $2,000 each in year 4 and year 5. If you require a 10% annual return, should you take the investment.What would the value of your investment be after five years if you invest P5,000 in a financial security with an annual return of 8% and reinvest the proceeds each year?
- How much will you need to invest today at 10% to have $10,000 six years from today?How much money should you invest now to ensure $600 per year for 9 years starting next year. The interstate is 16% per year?How much would you be willing to pay today for an investment that will return $6,800 to you eight years from today if your required rate of return is 12 percent?
- 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 are offered an investment that requires you to put up $5,000 today in exchange for $12,000 10 years from now. What is the annual rate of return on this investment?You want to have $1,970,000 at the end of 22 years. You have $6,000 to invest now, and you will receive $70,000 at the end of 10 years. In addition, you plan to invest an equal amount at the end of every year over the next 22 years to reach your goal. If the annual rate of interest is 6.40% , how much do you have to invest annually? a. $41,586 b. $154,648 c. $36,722 d. $39,503 e. $43,254
