An investment offers $2,500 per year for 8 years, with the first payment occurring one year from now. If the required return is 12%, what is the value of the investment?
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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 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 annuityAn investment offers $6500 per year forever, with the first payment occurring one year from now. If the required return is 7 per cent, What would the value be?
- An investment offers $6,100 per year for 15 years, with the first payment occurring today. If the required return is 6 per cent, what is the value of the investment?An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8% annually, what is this investment’s present value? Its future value?Consider an investment that offers $4,000, $5,000 and $6,000 in the next 3 years, with the first payment occurring one year from now. The required return is 7%. What is the present value of this investment?
- An investment offers $12,000 per year for 20 years, with the first payment occurring one year from now. If the required return is 11 percent, what is the value of the investment? What would the value be if a) the payments occurred for 35 years? For 60 years? Forever?An investment opportunity requires a payment of $620 for 12 years, starting a year from today. If required rate of return is 6.00 percent, what is the value of the investment to you today?an investment will pay $2,445 two years from now, $3,433 four years from now, and $1,611 five years from now. if rhe opportunity rate is 7.07 percent per year, what is the present value of the investment?
- An investment will pay $150 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and incur a $500 cost at the end of Year 6. If other investments of equal risk earn 6.7% annually, what is this investment’s present value? Its future value?An investment offers $8800 per year for 14 years with the first payment occuring one year from now. Assume the required returnis 12 percent. a. What is the value of investment today? b. What would the value be if the payment occured for 39 years? c. What would the value be if teh payments occured for 74 years? d. What would the value be if the payments occured forever?An investment will pay $150 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and incur a $500 cost at the end of Year 6. If other investments of equal risk earn 6.7% annually, what is this investment’s present value?
