Suppose the current value of an asset is $4,876, and 12 years ago the same asset was worth $7,272. The average annual rate of growth of this asset over this 12-year period is Assume sutailble value when required
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Suppose the current value of an asset is $4,876, and 12 years ago the same asset was worth $7,272. The average annual rate of growth of this asset over this 12-year period is
Assume sutailble value when required
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- Required:An asset that you hold has a value at the start of the year of 200. After six months it has increased invalue to 600, and after another six months has fallen in value back to 200.Required:Please calculate the annualised arithmetic return and the annualised geometric return of this asset.An engineering project has an investment amount of $126585 with an annual net profit of $53362 for 7 years. If the interest rate and average inflation rate are 15% and 6%, respectively, calculate the present worth of the entire period.An investment of $185,575 is expected to generate returns of $65,000 per year for each of the next 4 years. Following is a table for the present value of $1 at compound interest: Year 1 2 3 4 12% 0.943 0.909 0.893 0.870 0.890 0.826 0.797 0.756 0.840 0.751 0.712 0.658 0.792 0.683 0.636 0.572 0.747 0.621 0.567 0.497 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 12% 15% 1 0.943 0.909 0.893 0.870 2 1.833 1.736 1.690 1.626 3 2.673 2.487 2.402 2.283 4 3.465 3.170 3.037 2.855 4.212 3.791 3.605 3.353 5 5 6% 10% % 15% What is the investment's internal rate of return?
- What present value amounts to $23,513.44 if it is invested for 6 years at 10% compounded quarterly?Assume an investment of $100,000 is made today and is expected to earn a quoted interest rate of 9.20%. Compute the future value of the initial investment after 5 years (Column B), 25 years (Column C), and 45 years (Column D) at each compounding frequency in Column A (annual, semiannual, monthly, daily, and continuous). (A) (B) (C) (D) Frequency (m) FV (5 Years) FV (25 Years) FV (45 Years) 1 2 12 365 ∞Over a 46-year period an asset had an arithmetic return of 11.9 percent and a geometric return of 9.8 percent. Using Blume’s formula, what is your best estimate of the future annual returns over 8 years? 13 years? 23 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Future annual returns 8 years % 13 years % 23 years %
- If $11,000 is invested at an annual rate of 6.5% compounded continuously, find the future value after 7 1/2 years. $17,840.60 $17,910.65 $17,887.10 $13,511.52 $16,362.50Use the present value formula to determine the amount to be invested now, or the present value needed. The desired accumulated amount is $120,000 after 2 years invested in an account with 2% interest compounded quarterly.Returns of a Single Asset. Suppose you have invested in 2 assets whose annual returns are shown in the following table. If you invest $1000 in each asset: What will be the value of each asset at the end of year 5? What is the single annual rate which would yield the same value at the end of year 5? (meaning, what is the geometric average annual rate of return?) Year Asset A Asset B 1 -6.01% -9.98% 2 -10.27% 12.30% 3 13.75% 18.15% 4 24.31% -1.69% 5 20.88% 5.00% please use excel
- Use the present value formula to determine the amount to be invested now, or the present value needed. The desired accumulated amount is $95,000 after 14 years invested in an account with 4% interest compounded semiannually. The amount to be invested now, or the present value needed, isAn asset is expected to pay a cash flow of $10 every 6 months in perpetuity with the first cash flow occuring in one years' time.Similar investment opportunities have a required return of 8% compounded quarterly.What should be the price of the asset in exacly 2^1/2 years' time?Assume that $464.03 invested today will grow to $8,106.65 at the end of 47 quarters. Determine the effective annual interest rate being earned on this investment.